Value Added Tax
VAT Accounting Services
Value Added Tax (VAT) can often feel like a complex puzzle, especially with ever-changing regulations and a range of rules and exceptions to navigate. At Crestline Accountants, we simplify the VAT process for you. Our experienced accountants provide expert guidance and ongoing support, ensuring that your VAT obligations are met without the stress, while helping you avoid unnecessary costs.
We’re here to assist you with VAT returns, tax calculations, and compliance, giving you peace of mind that your VAT affairs are in expert hands. Whether you’re just starting out or are a seasoned business owner, our team is ready to help you manage your VAT effectively.
Get in touch with one of our VAT specialists today and find out how we can make VAT a breeze for you!
What is VAT?
VAT, or Value Added Tax, is a consumption tax added to the price of goods and services sold by VAT-registered businesses. While it may seem complicated, VAT serves a clear purpose: it helps generate revenue for the government while distributing the tax burden throughout the stages of production and consumption.
As a VAT-registered business, you can claim back VAT on qualifying business expenses and purchases when filing your VAT return.
What Are VAT Returns?
VAT returns are essential for every VAT-registered business. They help ensure that your business complies with its VAT responsibilities. HMRC requires all VAT-registered companies to submit VAT returns online, detailing the VAT you have charged your customers and the VAT you have paid on your own purchases. Typically, VAT returns are submitted quarterly.
Who Needs to Pay VAT?
In the UK, businesses with a taxable turnover to £90,000 in a 12-month period must register for VAT. This requirement applies to both Limited Companies and Sole Traders.
We Can Help You Find the Right VAT Scheme
There are several VAT schemes available, each offering different benefits depending on your business structure and turnover. At Crestline Accountants, we’ll guide you through the available options and help you choose the right VAT scheme for your business:
- Standard VAT Scheme: The traditional VAT scheme where you pay HMRC the difference between VAT charged on sales and VAT paid on purchases.
- VAT Flat Rate Scheme: A simplified method for businesses with a turnover of less than £150,000 annually. You pay a flat rate of VAT based on your industry, potentially saving money depending on your business.
- Annual Accounting Scheme: This scheme helps smooth out VAT payments by making an advanced payment based on estimated annual turnover. It’s ideal if your business regularly claims VAT refunds.
At Crestline Accountants, we ensure you select the VAT scheme that aligns with your business needs and optimises your tax position.
Why Do I Need a VAT Accountant?
VAT accounting can be confusing, especially since certain goods and services are exempt from VAT, while others are subject to reduced rates. Our expert VAT team will ensure you’re making the most of VAT without paying more than necessary.
By outsourcing your VAT responsibilities to us, you can:
- Ensure VAT compliance and avoid penalties
- Receive tailored advice on which VAT scheme is right for your business
- Ensure that you’re taking advantage of all available VAT exemptions or reductions
- Stay ahead of ever-changing VAT regulations
Are You VAT Registered?
If you’re not yet registered for VAT, don’t worry! We can help you navigate the process, ensuring that your business gets registered correctly. Once registered, you’ll be provided with a unique VAT registration number, which is required for future VAT dealings.
FAQs
What is Making Tax Digital for VAT?
Making Tax Digital (MTD) is a government initiative aimed at digitising the UK’s tax system. Businesses that are VAT-registered are now required to keep digital records and submit VAT returns through compatible software. At Crestline Accountants, we can help integrate accounting software that complies with MTD, ensuring you stay up to date and compliant.
What is the VAT Return Deadline?
The deadline for submitting your VAT return and making payment to HMRC is usually one month and seven days after the end of your accounting period. It’s essential to be organised and allow time for submission to avoid penalties.
How Do I Calculate VAT Liability?
To calculate your VAT liability, you need to determine the difference between the VAT you’ve charged on sales and the VAT you’ve paid on business purchases. Keeping accurate records of both is essential for smooth VAT return preparation.
Ready to Work Together?
If you need assistance with VAT registration, VAT returns, or advice on VAT schemes, contact Crestline Accountants today. Our team is here to ensure your VAT matters are handled efficiently and compliantly.