All businesses have a legal requirement to register for VAT if your taxable sales exceed a set annual figure (£85,000 from April 2017).
If you are making supplies below the limit you can apply for voluntary registration. This would allow you to reclaim input VAT, which could result in a repayment of VAT if your business was principally making zero rated supplies.
If you have not yet started to make taxable supplies but intend to do so, you can apply for registration. In this way input tax on start up expenses can be recovered.
It is important that a VAT registered business maintains complete and up to date records. This includes details of all supplies, purchases and expenses. Once registered you must make returns to HMRC showing amounts of output tax to be accounted for and of deductible input tax together with other statistical information.
There are a number of VAT accounting schemes:
- Cash accounting scheme
- Retail scheme
- Flat rate scheme
- Annual accounting schemes
VAT rules and accounting schemes can be complex with different VAT treatment of sales and supplies depending on the nature of your business.
Visit http://www.hmrc.gov.uk/vat for further information.
How we can help
The VAT services we offer include:
- Tailoring your accounting systems to bring together the VAT information accurately and quickly
- Ensuring that your business is VAT efficient and that adequate finance is available to meet your VAT liability on time
- Providing assistance with the completion of VAT returns
- Negotiating with HMRC if disagreements arise and in reaching settlements
- Advising as to whether any of the available schemes may be appropriate for you.