VAT

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VAT and Bookkeeping Support

Even if your turnover is below the current threshold, there can be benefits in registering for one of the government’s VAT schemes.

If you are not VAT registered but need to be or are uncertain of whether you should be VAT registered, we can provide advice and suggest which scheme would be most beneficial.

We can even look after the registration process for you. We can prepare your VAT returns as part of our bookkeeping service or from your own bookkeeping records. You will have peace of mind knowing that we will ensure that your VAT returns are accurate and submitted on time. We will make sure you pay what you owe when you owe it. No over-payments, no penalties.

Below is a brief overview of some of the most popular VAT schemes.

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Standard Rate Scheme

With the standard rate VAT scheme, VAT returns are usually made on a quarterly basis. The amount of VAT a business pays to HMRC is the difference between the VAT charged by the business to customers, known as output tax and the VAT the business pays on their own purchases known as input tax. If you are lucky to have paid more than you have charged, then you will be entitled to receive a refund.

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Flat Rate Scheme

Under the flat rate VAT scheme, the process is different as you won’t claim VAT you have paid on purchases. Instead, you will multiply your VAT flat rate percentage by your VAT inclusive turnover. This is what you will pay over to HM Revenue and Customs. Your flat rate percentage is determined by what type of business you are.

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Cash Accounting Scheme

With the standard rate scheme, you have to report these figures and pay any money to HMRC even if the invoices haven’t been paid. With the Cash Accounting Scheme, you will only pay VAT on your sales when your customers pay you and only reclaim VAT on your purchases when you have paid your supplier.

Do You Trade With EU Countries?

EC Sales List

If you’re a VAT-registered business in the UK that supplies goods or services to a VAT-registered business in the European Union, you need to inform HMRC about the supplies. This is done via the completion of an EC Sales List which shows details of each of your customers in the EU and the value (in sterling) of the supplies you’ve made to them in a VAT quarter.

The Business Bookkeeper can help you compile the EC Sales List and submit relevant information to HMRC on your behalf. We’d love to help.