Do I need to register for VAT?
You must register for VAT if your business turnover is expected to exceed £85,000 per annum, although you can register voluntarily. You must charge your customers the standard rate of VAT of 20% although certain types of business attract a lower rate of 5% and some are even zero-rated at 0%, for example most food and children’s clothes.
What are VAT returns?
VAT returns are forms which summarise the total VAT collected from customers and all the VAT reclaimed on goods purchased and services received. These returns need to be submitted to HMRC on a monthly or quarterly basis and the difference between what has been collected and what is being claimed should be paid 1 month and 7 days after the end of the quarter; if the VAT being claimed is greater than the element due then HMRC will make a repayment.
How can Downham Associates help?
VAT is an increasingly complex and time-consuming area of tax legislation and requires businesses to be fully aware of what can be reclaimed and the relevant deadlines for submission and payment – any missed deadlines can lead to penalties and surcharges. Our tax specialists will guide you every step of the way from registration to ensure that you are fully compliant and crucially that you are in a position to reclaim every allowable element of VAT in order to keep your VAT bill down to a minimum.
