VAT accountants services

for your small business

The qualified and experienced team prepare & submit your all-year-round VAT reporting and returns on your behalf.

The perfect mix of accounting software, tax experts and dedicated client manager could be just what you are looking for whilst staying compliant with HMRC’s Making Tax Digital rules.

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VAT Accountants Services
What Is VAT

What is VAT

Value Added Tax (VAT) is the tax you must pay when buying goods or services. If you are a business, you may be required to register for and collect VAT.

Businesses with a turnover of more than £85,000 must register to pay and charge VAT on the products and services they buy and sell. Businesses charge their customers VAT but must pay this to HMRC when they file their quarterly return.

VAT in the UK is typically charged at:

  • 20% on goods and services
  • 5% is applied to some health, energy, heating, and protective products and services.
  • 0% is applied to a range of products and services to do with health, building, publishing, and kids’ clothing.

Your VAT number

Company numbers are given only to VAT-registered businesses and can be found on your business’ VAT registration certificate. This vital piece of paperwork will also outline when your first VAT return is due and the date from which your company went over the registration threshold.

Is your business ready for making tax digital for VAT?

Making Tax Digital (MTD) is changing how UK businesses, accountants and bookkeepers do their taxes. Making Tax Digital makes it mandatory for VAT-registered businesses to digitally keep records and submit VAT returns.

When you sign up for one of our price packages, you will automatically access these award-winning accounting software: Xero, QuickBooks or FreeAgent. As a result, thousands of businesses trust all in the UK, and we are fully accredited and MTD compliant.

We will provide you with VAT advice and assistance whenever you require it so your business will always be compliant with this government initiative and file your returns digitally.

EU eCommerce VAT changes EU eCommerce VAT changes

EU eCommerce VAT changes

The last 18 months have seen a massive increase in sales for online operations businesses. This has prompted the EU to look at ways of simplifying VAT accounting for businesses selling to consumers across the EU and have come up with the ‘EU VAT Ecommerce Package’ to make VAT reporting easier for individual sellers and shift the VAT responsibilities onto marketplaces.

The 2021 VAT eCommerce package is aimed at simplifying seller’s VAT responsibilities, including the creation of a “One Stop Shop” (OSS) & “Import One Stop Shop” (IOSS) for B2C European sellers. In addition, it removes the previous state-by-state distance selling thresholds and changes to VAT liabilities for those selling through an online marketplace.

If you sell online and need accounting support or more guidance on International VAT, click on the button below.

Ecommerce accountants

Our VAT registration service

Your dedicated accounting manager will provide a comprehensive VAT service. They will assess if your business is on the most beneficial scheme and advise you to switch if it is more tax-efficient. In addition, they will register you for the suitable VAT scheme, manage the registration process, and help you stay on top of the ever-changing laws and regulations.

You do not have to be VAT registered (well, not until you reach revenues of £85k), but if your business is doing well and likely to hit this figure soon – get ahead of the game and start the process now! This leaves you with absolute peace of mind to run and develop your business.

Our VAT registration service
Looking for a VAT service for your Business
Looking for a VAT service for your Business?

Speak to one of our specialist!

HMRC Icon VAT Icon

Our VAT returns service

We love to plan ahead which means we will get everything ready for submission well before your VAT deadlines. Of course, there is a bit of paperwork involved, but hey, hand it over to us to deal with, that’s what we are here for!

We will also provide the relevant VAT returns reports and any amount that you need to pay.

We will also advise you on EU/EC sales based on your accounts and their position. Handling your finances gives us the knowledge to advise you on related matters so all your decisions help yourbusiness boom.

Vat calculations

Why choose us

Choosing a suitable VAT scheme can make a huge difference to your business. There are a number of factors you need to consider, whether it is defining your products and services, the nature of your business and the projected revenues, all of which can determine which scheme is right for you and your venture. Once you have chosen the right scheme, we will then help you through the registration process and advise you on switching if you are moving to a more tax-efficient scheme. We will also help you stay on top of all the VAT laws and regulations.

When you sign up for one of our price packages, you will automatically access the following award-winning accounting software packages - Xero, QuickBooks or FreeAgent. As a result, thousands of UK businesses trust all, and we are fully accredited and MTD compliant. In addition, we will provide you with advice and assistance whenever you require it, so your business will always be compliant with this new government initiative and file your VAT returns digitally.

At Fusion, we offer qualified and experienced accountants who work tirelessly on your behalf, delivering VAT reporting to ensure you are compliant, flagging up any potential risks. Our goal is to minimise your liabilities and compliance issues, ensuring all aspects of VAT transactions are captured correctly, and all month-end processes are actioned on a timely basis.
Why choose us VAT

Some of the VAT Schemes
we specialise in

Category of BusinessCurrent VAT Flat rate (%)
Accountancy or book keeping14.5
Catering Services Including restaurants
& takeaways
12.5
Entertainment or Joumalism12.5
Financial Services13.5
Hotel or accommodation10.5
Legal Services14.5
Publishing11
Social Work11
IT Consultants14.5

Flat Rate VAT Scheme

The flat rate VAT scheme is designed to help small businesses reduce the time spent accounting for VAT. You do not have to calculate the VAT on every transaction using the flat rate scheme. Instead, you pay a flat rate percentage of your turnover. The percentage is less than the standard VAT rate because it takes into account you are not reclaiming VAT on your purchases.

Depending on your trading sector, you can use a variety of flat-rate percentages. This reduces paperwork, but you can't claim VAT on purchases. Buying goods and services from VAT registered businesses may result in higher VAT. A lot of zero-rated or exempt sales may result in more because you must still pay the flat rate percentage on your turnover even if you do not charge VAT.

Flat rate schemes are helpful for service-orientated industries such as consultants, contractors etc. or businesses with a minimal number of vatable purchases.

Standard VATaccounting

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

This means that your VAT calculations will be based on your raised invoice rather than the date the invoice was paid.

This could harm your business cash flow since you must pay VAT over to HMRC for services or goods sold, which you have not yet received the money for.

If, on the other hand, you have not paid for goods purchased, you can claim the VAT on the invoice received, resulting in a positive impact on your cash flow.

Standard VAT accounting
cash vat accounting

Cash VATaccounting

With the Cash Accounting Scheme, you pay VAT on your sales when your customers pay you or reclaim VAT on your purchases when you have paid your supplier.

Cash accounting can benefit your cash flow, especially if your customers are slow to pay or if you have bad debts. Using the cash accounting scheme, you do not pay VAT if your customer never pays you.

Meet our VAT specialist

Rima Abou

Rima Abou

Client accountant

“Hi there, I am a Client Accountant here at Fusion Accountants handling a portfolio of small to medium size entities across a range of industries including, Hospitality, IT consultancy, Manufacturing, Construction (CIS) and E-commerce.

Working closely with my clients and understanding their business is key when it comes to devlivering a value add account reporting that is aimed to provide the business with the tool to make key decisions. Outside work, I enjoy cooking international dishes, spending quality time with my husband and three children.”

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FAQ 's

faq

If you are VAT registered, your income and expenses are likely to be shown 'net' of VAT, i.e. any VAT charged/ incurred is not included in the profit and loss account. Also, the profit and loss account only shows 'revenue' transactions that relate to the commercial activity of the business.

You usually submit a VAT Return to HM Revenue and Customs ( HMRC ) every three months. This period is known as your 'accounting period. The VAT Return records things for the accounting period, like your total sales and purchases.

The most common set of quarterly VAT return dates are:
  • 1st January - 31st March.
  • 1st April - 30th June.
  • 1st July - 30th September.
  • 1st October - 31st December.

You need a VAT number and a VAT online account. You can then submit your VAT Return using HMRC's free online service or commercial accounting software. However, you cannot use your online account to send your VAT Return if you have signed up for 'Making Tax Digital for VAT.'

If your VAT period say ends on 31 March requires payment of the VAT liability by 7 May. However, if your business registered for paying by direct debit, payments are usually taken three days after VAT return deadline.'

To change from quarterly to monthly VAT returns, you can log on to your VAT online services account and select 'change registration details. Alternatively, complete this form VAT484 and send it to HMRC in the post.

If you are late filing a VAT return or making a payment to HMRC, you will enter into a 12-month probation period known as a 'surcharge period'. If you file any further late returns or make more late payments during this period, you will incur a penalty, and the surcharge period will be reset for a further 12 months.

You can generally reclaim VAT on goods you bought up to 4 years before you registered for VAT and services you bought up to 6 months before you registered as long as the following conditions are met; You bought the goods as the entity that is now registered for VAT.