VAT specific to Small Businesses
As a small business owner, navigating through the VAT scheme by yourself can be baffling and you may inadvertently over or under pay your VAT. This is why at Tax Agility we have a suite of VAT Services designed to suit you. We can:
- Advise on the best VAT strategy for your business
- Provide VAT registration assistance
- Advise on the most appropriate VAT scheme for your business
- Assist with the preparation of quarterly returns
- Provide VAT advice for complex financial transactions
- Investigate VAT assessments
- VAT control and reconciliation
Your First Consultation is Free & No-Obligation
VAT is a vast subject, so get in touch if you feel that reducing your quarterly and ongoing VAT administration is a burden which you could gladly do without. We offer a no-obligation and totally free of charge first consultation to understand your VAT situation, before attempting to recommend an accounting solution tailored to your needs.
Even if you aren’t ready to register yet, we can help to assess your situation and discuss what schemes would be most beneficial to you at the moment. Then we will proactively monitor your status, so that when you are ready, we can manage all the paperwork for you and liaise with HMRC on your behalf.
Call us at 020 8108 0090 or complete the enquiry form and we will call you back.
Our services also include:
More about VAT
If you are interested to know more about VAT, continue to scroll down and read more about the workings of VAT.
The workings of VAT
VAT is a tax charged on sales made – when goods or services are transferred to the customer, the VAT charge is liable from this point, as opposed to when the cash for the sale is collected. Exception is retail and other sales where a receipt is provided and the cash paid simultaneously (like when you are buying a drink over the counter in a pub).
A VAT registered business has to charge VAT on sales, but can also reclaim VAT on purchases charged by other VAT registered businesses.
At the end of every three months you have to make a return to the VAT office (a VAT Return) which details how much VAT you have charged (output tax – input tax) and how much you are reclaiming. You will then pay the difference, or if you have claimed more than you charged, the VAT office will repay you the difference.
VAT Registration Process
One common question Small Business Owners have is whether or not they should register for VAT. It is true that you may not want to register your company for VAT until its turnover hits a certain level, which is currently at £82k but can and often does change each year as part of the UK Government’s Budget. One significant benefit of registering is that it enables you to recover any VAT that you incur on things that you buy for the businesses, such as computer equipment and broadband services.
Registration for VAT (Form VAT1) involves filling out a standard DD or standing order so that the amount you need to pay is deducted automatically from your Bank Account (form 622). The quarterly VAT returns and annual VAT summary forms are filled out directly through the HMRC gateway. Our VAT specialists at Tax Agility can guide you through the registration process and any subsequent VAT returns.
VAT Surcharges and Penalties
As a VAT registered company, you submit a VAT return to and pay HMRC every 3 months. This period is known as your ‘accounting period’. Your VAT Return records things like: total sales and purchases, the amount of VAT you owe, the amount of VAT you can claim, and what your VAT refund from HMRC is. It is essential to submit a VAT Return even if you have no VAT to pay or reclaim.
If you are late in submitting your VAT returns or payment, you will either get a polite letter or a default surcharge liability notice from HMRC, depending on your turnover. Once you receive the default surcharge liability, you will need to submit your VAT returns and payments on time for the next 12 months, failing to do so will increase your surcharge rate.
VAT Help from Tax Agility
If there is an exceptional circumstance preventing you to submit your VAT return on time, or if you would like to know more about VAT on land and buildings transactions, VAT relief on imported goods that are supplied to another EU country, or any VAT matters, call Tax Agility at 020 8108 0090 today. Our VAT specialists are ready to help.