Value Added Tax
VAT (Valued Added Tax) is a form of Tax that is applied in countries belonging to the EU. It is effectively a Tax charged upon the end customer or consumer. For example, if you are purchasing a new car, a TV, or even dining out at restaurant, most likely you will be paying VAT. The current rate of VAT is 20%, so if you were to pay for an item for £120, £100 would go to the retailer and £20 would go to HMRC.
For those self-employed VAT registration can be required for a number of reasons:
- Compulsory VAT registration, when your turnover exceeds £83,000
- Voluntary registration for when your customers are VAT registered
- Voluntary registration when your sales are zero rated
VAT returns are usually prepared on a quarterly basis, required by HMRC along with the payment one month after the quarter end. Just like other Income Taxes, there are many rules, reliefs, regulations that come into play. Similarly for late/inaccurate returns or late payments, heavy penalties can be issued.
Why Quick Rebates?
Peace of Mind
VAT Reduction Strategies
VAT rules and regulations, although governed by HMRC who also oversee Income Tax, the reliefs and allowances work in a completely different manner. What counts as an allowable expense for VAT might not quality for Income Tax, and vice versa. Furthermore the Tax reliefs you can apply for can be quite complicated:
- Cash accounting scheme
- Annual accounting
- Flat rate schemes
- Fuel scale charges
HMRC can be quick to dish out penalties for inaccurate returns, and even have the power to go back up to six years for incorrect declarations. Have peace of mind that your VAT returns are being professionally and on time.
What Do You Need?
For the preparation of your VAT return, copies or details of your sales and purchase invoices together with your bank statements would be the bare minimum. Like with other areas, the more information we have access to, the better we are positioned to reduce your VAT liability.
Can You Complete the Return on my Behalf?
Absolutely, and this is what we recommend. Although the overall responsibility always lies with the Tax payer, we can prepare and submit the VAT return on your behalf. This is also carried out online.
Registering for VAT
Even registering for VAT can be a minefield. Do you apply for the flat rate schemes, cash accounting? It can be easy to register for VAT without bearing in mind the certain reliefs or schemes allowable. Significant cash can be lost by operating the incorrect VAT scheme.
Deregistering for VAT
Deregistering for VAT can also have it’s headaches, which involves completing a VAT return. Special circumstances are required if the business holds stock or assets on hand which have had input VAT claimed on a previous VAT return. Contact QuickRebates today for a no-obligation quote.
The administrative overhead of VAT is very similar to that of PAYE. For many business owners and operators it’s an area that is not only cumbersome but takes away their focus away from other but more important business aspects. Like payroll, this is an area of business that should be outsourced to professionals leaving you do what you do best.
VAT regulations change commonly, what you find is allowable today may not be allowable tomorrow. Bearing in mind that HMRC issue penalties for inaccurate declarations, can you afford the risk of being penalised?
Leave the preparation of your VAT returns with QuickRebates. The process is hassle free, and you can have peace of mind that your VAT obligations are being met on a timely basis. Contact us for more information.