3 Things You Should Know About VAT
VAT accountants from The Kelvin Partnership can help your business.
It is the responsibility of the business owner to register for VAT if your business makes more than £83,000. You can easily register online and by doing this you will create an online account allowing you to submit your VAT returns to HMRC. To do this you will need to provide turnover, business and bank details. After registering, you will then have to pay HMRC any VAT due. We can easily take on this responsibility making sure that your business is covered when it comes things like knowing more about, VAT returns, VAT planning etc. If you prefer to handle VAT within the company, we can provide any guidance needed. VAT accountants can help you easily with this.
There are three main different rates of VAT to understand. The VAT increased to 20% in January 2011, most goods and services are now sold at that standard rate. Charging the reduced VAT, which is 5%, can depend on what is being sold and the circumstances of the sale. For example, home energy and smoking cessation products – nicotine patches and gum – are sold at this reduced VAT rate. A zero rate of VAT means that the items are still VAT-taxable but you need to charge custom 0%. You also have to record these goods sold at zero rate on the VAT return. For example, children’s clothes and footwear.
You should be submitting VAT returns every three months to HMRC. Information of total sales and purchases, VAT owed, VAT possible for reclaim and what your VAT refund is from HMRC should all recorded for the VAT return. Even if you do not have any VAT to pay or reclaim you must submit a return. Businesses can usually reclaim the VAT paid on expenses and purchases. However, the claim must be for business activities (with records supporting the paid VAT and claim). Successfully completing VAT returns is crucial for a business. An investigation by HMRC can often be intense so it is important to ensure that the information provided is accurate. If you would like any further guidance, an experienced accountant from The Kelvin Partnership will be more than happy to advise. Check out our last post for more information on how a Glasgow Accountant can help you.
Our VAT accountants are here to help at any time. If you would like to learn more about the services The Kelvin Partnership provides, contact us.
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