VAT, or value added tax, is added to most things that we buy in the UK. As a VAT registered business, you must also add VAT to everything that you sell which is liable for VAT and this then forms part of your VAT return.
For each VAT accounting period you must have a record of your total sales and purchases. You will then have a figure for how much VAT you owe from sales, how much you can reclaim from purchases and what you need to pay or reclaim based on these figures.
To register for VAT, you must have a VAT taxable turnover of more than £85,000. You can register to receive your VAT number and start to charge VAT. You can also register voluntarily if you don’t meet the threshold. We can talk to you about the advantages of this and discuss whether it might suit your business.
In April 2019, the way in which you submit your VAT return has changed. As part of Making Tax Digital, companies must now use compatible software or spreadsheets to submit their VAT returns and can no longer just submit them directly to HMRC. We are able to use a wide range of accounting software and can help you make sure that your VAT returns are compatible with the Making Tax Digital requirements.
We’re here to help you ensure that your VAT returns are filed on time and are accurate. We can also look over your VAT return to see if there are any queries that you might have missed. We can help you with your bookkeeping to ensure that you have accurate records which show how much VAT you’ve charged, and how much you’ve paid on purchases. We can also help you with any queries on your VAT return and help you resolve these.