VAT accountant

Value-added tax (VAT) is the tax you pay when you buy or sell goods or services. For businesses, VAT is one of the most complicated aspects of the UK tax regime and can feel like a significant burden.

The rules around the tax also change regularly, and, as ever with HMRC, if you make a mistake on your quarterly VAT return, you face significant financial consequences.

As VAT accountants, you can rest assured that your tax obligations are being taken care of to the highest standard. We are VAT specialists. We will keep your business compliant with its obligations, no matter how complex they are.

Thresholds and registration

Businesses with a turnover of more than £85,000 must register for VAT, and pay and charge the tax on the products and services they buy and sell.

If your business is drawing close to the threshold, you may need to consider registering for the VAT scheme. But this works two ways. You can also deregister if your turnover dips far below the threshold. Either way, we will be on hand to organise your VAT duties for HMRC.

Other businesses can choose to register for VAT voluntarily, however. Businesses charge their customers VAT and then pay that back to HMRC when they file their quarterly VAT returns.

Keeping track of your VAT rates

Your business’s VAT rates may vary depending on the goods and services you provide. You’ll need to charge VAT at the set rates, which are:

• 20% on goods and services
• 5% on some health, energy, heating, and protective products and services
• 0% on some products including health, building, publishing and children’s clothing.

This makes it essential to know exactly how much to charge in order to settle your obligations with HMRC.

Making Tax Digital

It is now a legal requirement to record and report your business’s VAT transactions digitally through the Government’s Making Tax Digital scheme. In order to do so, you must use HMRC-recognised software to file your returns every quarter. Failure to do so can result in fines: yet another reason why hiring a VAT-specialist accountant is so important.

We will ensure you stay compliant with the Government guidelines on VAT reporting and record keeping. We will set you up with the appropriate software and answer any questions you may have on the functionality of its VAT reporting features.

Talk to us if you need help from a VAT accountant.