One of the most essential parts of owning a business is understanding what value added tax (VAT) is, and how it works. In the UK, VAT is charged on the supply of services or goods where the supply, and individual providing the supply, are taxable. Once a business has a turnover that exceeds VAT threshold, it is required to become VAT registered.
Being registered for VAT allows the VAT from the purchase of services or goods, made through a company, to be claimed for. There are many benefits and conditions associated with VAT registration, that make it an important move for businesses in the UK.
If you need advice for VAT , but don’t know where to start, the team at The Accountancy Solutions can advice you. Providing a full service, we will help you with all areas of your VAT registration and returns, ensuring that your company VAT procedures meet HMRC regulations and that you follow the responsibilities required of VAT registration.
Calculating your VAT payment can be a difficult and long-winded task if you don’t have experience with the procedures and particular requirements. A certified accountant can simplify the process, offering friendly advice to better equip you when going forward with your business.
COMPLIANCE FOR VAT
The Accountancy Solutions team offers free advice to business customers. Some of the important points and practices which need to be in place for VAT compliance are mentioned below.
Compiling Sales & Purchase Ledgers for UK, EU and EC : As well as with supplies that are traded within the UK; for businesses that are VAT-registered and trade with other European countries, it is essential that the HMRC is informed as to the nature of the business and what supplies are being traded. Compiling sales and completing the EC sales list is vital here to ensure that the HMRC is kept informed as to your company’s operations. A professionally managed purchase ledger will help your company to keep a complete record of your company’s expenses and purchases, showing the correct amount that you may have outstanding.
VAT Moss Registrations and Returns : VAT MOSS procedure can be complex but it is essential for those companies who operate partially or full online. VAT MOSS covers the digital market and the services provided online, when a company sells online services within the EU they must be registered for VAT MOSS and provide annual VAT MOSS returns. At The Accountancy Solutions we can explain the procedure and ensure that you know the right steps to take in order to align to VAT MOSS payments to HMRC regulations.
Calculating VAT, Output & Input Tax
For every service performed or product sold it is vital that the VAT is calculated and recorded correctly so that you have all the needed information for your returns. This includes both VAT inclusive and exclusive prices for standard and reduced rates where applicable. Output tax and input tax are also important calculations that have to be made with output tax relating to your sales to customers and businesses, and input tax needing to be calculated on those products and services that your company purchases. Our team of accountants can provide advice drawing on their years of experience calculating VAT payments and can assist in all areas if you are unsure of your company’s VAT requirements.
Managing your VAT correctly is a very important part of running a business. With expert assistance, you can be sure that your returns and assessments are completed to the required level, giving you assurance that your VAT affairs are always in order. Our team of VAT accountants can help in all areas of self-assessments, the summary of gains and losses, and the correct claiming of allowances.
Whether you are considering voluntary VAT registration, or you expect to reach the threshold for compulsory VAT registration, our team of expert accountants can help. From initial aid with the VAT registration, to ongoing assistance with your VAT calculations, your business VAT requirements are safe in our hands.