VAT RATES AND SCHEME

VAT RATES AND SCHEME

Once you have registered with the HMRC for VAT, there are additional aspects of VAT that you need to consider. Two of the most important of these are VAT rates and schemes. A VAT scheme is a way of informing the HMRC the amount of VAT that you have charged on your products and services, and how much you have been charged for VAT.

Most businesses keep a record of their VAT input and output, in order to accurately calculate their VAT return amounts. Schemes offer an alternative approach, with some schemes tailored to certain sectors of trade and introduce different rates.

VAT RATES AND SCHEME : WHAT YOU NEED TO KNOW

Choosing which VAT scheme to use can drastically affect your business, in terms of cashflow and time. Completing your VAT returns each year can be a very time-consuming process, which schemes can greatly assist with. When complied and managed by an expert accountant, it can be a much more practical and cost-saving way to run a business and stay on top of VAT payments.

There are a number of schemes that we can help to implement and manage, including;

  • Flat Rate Scheme – for businesses with a turnover of £150,000 or less.
  • Margin Scheme – for businesses who specialise in certain goods, such as second-hand items.
  • Retail Scheme – for businesses who sell directly, in volume, to the general public.

Advice for VAT Rates and Scheme

For many businesses, VAT calculations and assessments are incredibly complicated, taking into consideration an extensive number of goods and services, along with a high volume of sales. Reducing the work needed by implementing scheme can be highly beneficial.

At The Accountancy Solutions, we can advise you on the right schemes for your business, help you to improve your cash-flow, and make the process much easier on an ongoing basis. After fully reviewing your business, our team can put you on the right track to equipping your business with the best tools to properly manage your unique VAT requirements.

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