Value Added Tax (VAT)
Value Added Tax
Value added tax is a tax levied on sales by all business with a turnover that exceeds the Vat registration threshold. (Click below to see the current registration threshold)
In addition to compulsory registration you can volunteer to register, if your turnover is below the registration threshold, but only if it is beneficial to you. In general terms, this would only be the case if all of your customers are vat registered and able to reclaim the vat you charge them. Never the case if you trade with the general public.
Once you establish that you need register for vat they are number of schemes available, for example standard, cash accounting, retail, flat rate, annual etc.
Edward Lowe Accountants will not only advise on when you need to register but which is the best scheme for you. Getting this wrong could mean you incurring hefty late registration penalties in addition to paying more vat than you need to. Our advice will ensure you do not make this mistake.
Once you are registered you need to keep business records to enable you to prepare and file on line accurate Vat Returns on time. Failing to do this will result in late filing surcharges and could incur a fine of up to £3,000 for failing to keep adequate business records.
At Edward Lowe Accountants will do not believe in keeping records that are not necessary. We will recommend a system that is the minimum you need to keep to be compliant and provide full training on how to complete these. In addition we will setup vat return on line filing and instruct you how to file your vat return.