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.
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
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 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.
Why choose us
Some of the VAT Schemes
we specialise in
|Category of Business||Current VAT Flat rate (%)|
|Accountancy or book keeping||14.5|
|Catering Services Including restaurants |
|Entertainment or Joumalism||12.5|
|Hotel or accommodation||10.5|
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 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.
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
“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.”
- 1st January - 31st March.
- 1st April - 30th June.
- 1st July - 30th September.
- 1st October - 31st December.