Value Added Tax (VAT) is one of the most complex and onerous tax regimes imposed on business - so complex that many businesses inadvertently overpay or underpay VAT.
The ever widening scope of VAT, the constant stream of detailed changes to the regulations, and the ever growing demands of Customs and Excise call for a trained professional eye to ensure that you do not fall foul of the regulations and do not pay the Exchequer more than you need to.
We provide an efficient cost effective VAT service, which includes:
- Assistance with VAT registration
- Advice on VAT planning and administration
- Use of the most appropriate scheme
- VAT control and reconciliation
- Help with completing VAT returns
- Planning to minimise future problems with Customs and Excise
- Negotiating with Customs and Excise in disputes and representing you at VAT tribunals
VAT Advice & Information For Small Businesses
How to get Registered and what to consider.
If you are a VAT registered UK business we can complete your calculations for VAT returns from your own records or provide a bookkeeping service to enable the VAT returns to be completed efficiently. If you are approaching the registration thresholds we can advise on your obligations and assist you in registering with Customs & Excise. Additionally, we can advise on special VAT schemes and methods to minimise your liabilities.
If you are at all unsure how to proceed please do get in touch and ask for our advice. We can advise on all the issues raised in this article – and we will help you fill in the forms, if needed.
VAT accounting schemes
If you use one or more of the following VAT accounting schemes, you may need to keep different records:
- annual accounting scheme: you complete a VAT return only once a year
- cash accounting scheme: you only pay VAT when your customers pay you
- flat rate scheme: you pay a fixed percentage of your turnover as VAT
- retail schemes: if you sell direct to the public, you have several different options of accounting for VAT
- second-hand goods scheme: you only need to account for VAT on the margin of goods you buy and sell
Keeping VAT records
In general, you must keep the following VAT records:
- Records of all the standard-rated, reduced-rated, zero-rated and exempt goods and services that you buy or sell.
- Copies of all sales invoices you issue. Except: if you are a retailer you do not have to keep copies of any less detailed VAT invoices for items under £250 including VAT - unless your customer has asked for a VAT invoice.
- All purchase invoices for items you buy.
- All credit notes and debit notes you receive.
- Copies of all credit notes and debit notes you issue.
- Any self-billing agreements you make as a supplier.
- Copies of self-billing agreements you make as a customer and name, address and VAT registration number of the supplier.
- Records of any goods you give away or take from stock for your private use including rate and amount of VAT.
- Records of any goods or services bought for which you cannot reclaim the VAT, such as business entertainment.
- Any documents dealing with special VAT treatment, such as reliefs or zero-rating by certificate.
- Records of any goods you export.
- Records of any taxable self-supplies you make - for example if you sell cars and you use one of your cars in stock for business purposes.
- Any adjustments such as corrections to your accounts or amended VAT invoices.
Contact MacLean Fisher Tait today to remove the hassle of VAT and tax returns!