Small businesses VAT services

As a small or medium sized business (SME) 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 your small to medium sized business. We can:

  • Advice on the best VAT strategy for your business
  • Provide VAT registration assistance
  • Advice 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 small business 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.

More about VAT

If you’re keen to delve deeper into the intricacies of VAT, continue reading to uncover the nuances of VAT operations and the latest updates for 2023.

The Workings of VAT

VAT, a tax levied on sales, becomes applicable when goods or services are delivered to the customer. This is distinct from when payment is received, with the exception of retail and similar transactions where payment and receipt are simultaneous, like purchasing a drink at a pub.

A VAT-registered business must charge VAT on its sales but can also reclaim VAT on purchases made from other VAT-registered entities. Every quarter, a VAT Return must be submitted, detailing the VAT charged (output tax) versus the VAT reclaimed (input tax). The difference is then paid to the VAT office, or if your reclaimed amount exceeds what you’ve charged, you’ll receive a refund.

VAT Registration Process

A common query among small business owners is the necessity and timing of VAT registration. While it’s often advisable to delay VAT registration until your turnover reaches the current threshold of £85,000, registering allows you to reclaim VAT on business-related purchases, such as computer equipment and broadband services.

The registration process (Form VAT1) includes setting up a direct debit or standing order for automatic deductions from your bank account (form 622). VAT returns and annual summaries are submitted via the HMRC gateway. Our VAT specialists at Tax Agility can guide you through the registration process and subsequent VAT returns.

VAT Surcharges and Penalties

As a VAT-registered company, you’re required to submit VAT returns and payments to HMRC every three months, known as your ‘accounting period’. Your VAT Return should record total sales and purchases, the VAT owed, reclaimable VAT, and any VAT refund due from HMRC. It’s crucial to submit a VAT Return even if there’s no VAT to pay or reclaim.

Late submissions or payments can result in a polite reminder or a default surcharge liability notice from HMRC, depending on your turnover. Once under a default surcharge liability, timely submissions and payments are essential for the next 12 months to avoid increased surcharge rates.

VAT Help from Tax Agility

If exceptional circumstances prevent timely VAT return submission, or if you seek more information on VAT in land and building transactions, VAT relief on imported goods supplied to another EU country, or any VAT-related matters, contact Tax Agility at 020 8108 0090. Our VAT specialists are ready to assist you.