We offer comprehensive VAT services to businesses of all sizes and sectors.

VAT Accountants

What is VAT

Value Added Tax (VAT) is the tax you must pay when you buy 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. Other businesses can choose to register for VAT voluntarily. Businesses charge their customers VAT, but must then pay this to HMRC when they file their quarterly VAT return.

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

What is vat

Is your business ready for making tax digital for VAT?

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

When you sign up for one of our price packages you will automatically have access to these award winning accounting software: Xero, QuickBooks or FreeAgent. All are trusted by thousands of businesses in the UK and we are fully accredited and MTD compliant.

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

Our VAT registration service

Your dedicated accountant manager will provide an all-round VAT service. They will assess if your business is on the most beneficial VAT scheme and advise you to switch if it is more tax efficient to do so. They will register you for the right VAT scheme and manage the registration process, and help you stay on top of the ever-changing VAT laws and regulations. You don’t 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 real peace of mind to run and develop your business.

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 your business boom.

Vat calculations

Looking For A Complete
VAT returns & advice service?

Speak to one of our Specialist!

Complete bookkeeping service

Some of the VAT Schemes
we specialise in

Category of BusinessCurrent VAT Flat rate (%)
Accountancy or book keeping14.5
Catering Services Including restaurants & takeaways12.5
Entertainment or Joumalism12.5
Financial Services13.5
Hotel or accommodation10.5
Legal Services14.5
Social Work11
IT Consultants14.5

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 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 are a range of flat-rate percentages – the one you use depends on your trading 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.

Flat rate schemes are therefore useful for service-orientated industries such as Consultants, contractors etc or businesses with very small number of vatable purchases.

Standard VAT accounting

Standard VAT accounting allows you to reclaim VAT you may have had to pay on your 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.

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 effect on 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

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

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.

Why choose us

Fusion logo white

Choosing the right VAT scheme can make a huge difference to your business. There are a number of factors you need to consider from defining your products and services, the nature of your business and the projected revenues all can determine which is the right VAT scheme for you and your venture.

Once you have chosen the right VAT scheme, we will then help you through the registration process and advise you how to switch 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 have access to the following award winning accounting software packages - Xero, QuickBooks or FreeAgent. All are trusted by thousands of UK businesses and we are fully accredited and MTD compliant.

We will provide you with VAT advice and VAT assistance whenever you require it so your business will always be compliant with this new government initiative and will 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 VAT compliant, flagging up any potential risks.

Our goal is to minimise your VAT liabilities and compliance issues, ensuring all aspects of VAT transactions are captured correctly and all month end processes are actioned on a timely basis.

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 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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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 show 'revenue' transactions that relate to the commercial activity of the business.

You usually submit a VAT Return to HM Revenue and Customs ( HMRC ) every 3 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. 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 the 7 May. However, if your business registered for paying by direct debit, payments are usually taken 3 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 sent 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; The goods were bought by you as the entity that is now registered for VAT.