Accountants, Tax Advisers And Business Consultants

 

VALUE ADDED TAX

VAT registered businesses act as unpaid tax collectors and are required to account both promptly and accurately for all the tax revenue collected by them.
 

The VAT system is policed by Customs & Excise with heavy penalties for breaches of the legislation. Ignorance is not an acceptable excuse for not complying with the rules.

A taxable person is anyone who makes or intends to make taxable supplies and is required to be registered. For the purpose of VAT registration a person includes:-

 

Ø        Individuals

Ø        Partnerships

Ø        Companies, clubs and associations

Ø        Charities

 

You are required to register for VAT if the value of your taxable supplies exceeds a set annual figure (currently £55,000). However in addition to this, there are specific rules as to calculate when you actually need to register. If you do not then this could well result in penalties, interest and of course any overdue VAT payable.


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.
 

Ensuring that you comply with all the VAT regulations is essential. We can assist you in a number of ways including the following:-

 

Ø    

 Advising you when you need to register for VAT

Ø     

 Tailoring your accounting systems to bring together the VAT information accurately and quickly

Ø      

 Ensuring that your business is VAT efficient and that adequate finance is available to meet your VAT liability on time

Ø      

 Providing assistance with the completion of VAT returns

Ø     

 Negotiating with Customs & Excise if disagreements arise and in reaching settlements

Ø     

 Carrying out a VAT Health Check

 

If you would like to discuss any of the above points mentioned or for other professional VAT advice please contact us.

 

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