VAT Returns

VAT Service for Businesses & Limited Companies

All businesses with VAT taxable turnover more than £85,000 (2017-18) must register for VAT with the HMRC. Even if your taxable turnover at the moment is below the threshold, you may still be required to register for VAT if;
  • You expect to go over the threshold in a single 30 day period
  • You take over a business that is already registered

VAT Registration

Before registering for any VAT scheme, it is important to understand your business requirements and then choose the most appropriate VAT scheme for your business.

Your dedicated account manager will discuss with and assess which VAT scheme is best suited for your business. They will then get you registered for VAT and guide you all the way to raising your VAT invoices.

Below is brief summary of some of the VAT schemes available.

VAT SchemeHow it Works

Flat Rate VAT Scheme

The flat rate VAT scheme is designed to help small businesses reduce the amount of time they spend accounting for VAT. Using the flat rate scheme, you do not have to calculate the VAT on each and every transaction. Instead, you simply pay a flat rate percentage of your turnover as VAT.

The percentage is less than the standard VAT rate because it takes into account the fact that you are not reclaiming VAT on your purchases. There is range of flat rate percentages – the one you use depends on your trade sector.

Although the flat rate scheme can reduce your paperwork, one downside is that you cannot reclaim VAT on your purchases. If you buy a lot of goods and services from VAT registered business, you could end up paying more VAT.

Also, if you make a lot of zero- rated or exempt sales, you could end up paying more VAT because you will still be liable to pay the flat rate percentage on your turnover for those sales, even though you are not charging VAT on those sales.

Standard VAT accounting

Standard VAT accounting allows you to reclaim VAT that you may have had to pay on you purchases. You will pay or reclaim the net of the VAT that you have charged your customers and the VAT that you have had to pay on your purchases.

Standard VAT accounting method follows the accrual basis of accounting; this means that your VAT calculations will be based on your raised invoice rather than the date the invoice was paid. This could have a negative cashflow effect on your business since you have to pay VAT over to HMRC for services or goods sold which you have not yet received the money for.

On the contrary, if you have not paid for goods purchased, you can claim the VAT on the invoice received resulting in positive impact on you cashflow.

Cash VAT Accounting

In contrast to standard VAT accounting, cash accounting allows you to calculate on actual VAT money paid or received than on invoice basis. Cash accounting can be beneficial for your cash flow especially if your customers are slow to pay. It is even more useful if you have bad debts. Using the cash accounting scheme, you do not pay VAT if your customer never pays you.

Full VAT assistance

Choosing the right VAT scheme can make a huge difference for your business. There are number of factors that need to be considered, such as products or services being supplied, the nature of business and the revenue that can all affect the right choice of VAT scheme.

How we can Help?

As specialist chartered Accountants for small businesses we can give you full VAT assistance to ensure that you chose the right VAT scheme for your business and you stay on top of all the ever changing VAT laws and regulations.

What you can expect from our services

  • VAT Registration
  • Advise on best scheme for your business
  • Full support on any VAT scheme
  • Submission of VAT returns
  • Advice on EU/EC sales
  • Help with HMRC VAT enquiries
  • Choice of online accounting softwares for recording VAT Invoices

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