Your VAT reporting

VAT is often considered 'black or white'. For example, you should register or not and an invoice should include VAT or not. However, as with many taxes in the UK, it can be a grey area and can depend!

You must register for VAT with HMRC if your business’ VAT taxable turnover is more than £85,000 (as at the time of writing this article & subject to change). However, some businesses sell only VAT-exempt goods and services and therefore can’t register for VAT. You can also voluntary register for VAT if you are below this threshold.

Whether you are just starting your own business or have been trading a while, we are able to assist with the paperwork to register for VAT, the completion of your VAT returns or simply advising whether you need to be VAT registered or not. 

Our clients have unlimited access to our team at no extra cost, so many use this offer as an opportunity to check how they should handle VAT on certain, sometimes comlex, circumstances.

We also proactively monitor our clients records and advise if / when we think you would be able to or benefit from deregistering. 

There are also a number of different VAT schemes that may be applicable to your business. Alternatives to the standard registration, you can opt for schemes such as Cash accounting, Flat rate scheme and Annual Accounting for VAT. Again, we advise our clients when it may be appropriate to adopt one of these alternative schemes.

It is also often missed that you can backdate claims for VAT paid prior to the official VAT registration date advised on your VAT certificate (rules and circumstances apply). For example, two months prior to the registration date, you purchased equipment to help you manage the growth you have experienced and paid VAT on the supply of goods to you.

The expectation of HMRC is to file your VAT returns online and a paper return is now very rare, however there are circumstances when you can file a paper return and can contact HMRC if applicable.  Much of todays Bookkeeping software, such as Xero and Sage, allows you to file your VAT returns online by the click of a button. We are happy to demonstrate how such returns are undertaken. 

Filing your VAT returns online quarterly appears to be a requirement of the governments 'Making Tax Digital' initiative from 2020. 

Late VAT registration, late returns, late VAT payments and errors can all lead to penalties and interest being charged. So if in doubt take advice or advise HMRC. 

We look to take away the complexities and worries around taxes, such as VAT, and if we are appointed as your Agent, we can act on your behalf in correspondence with HMRC. 

If you would like to talk about your VAT or discuss your circumstances further, then please call us on 01865 379272.