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The implications of late VAT registration
Read this article to find out what happens if a business registers for VAT late.
Do we need to register for VAT?
If you make taxable supplies for VAT, you will need to register for VAT if your taxable supplies exceed or will exceed the VAT registration threshold. Read this article to find out when you must register and how to register.
Pros and cons of the VAT flat rate scheme
The VAT flat rate scheme can save work, but may cost you money. Read this article to find out why. #VAT #flatratescheme #limitedcostbusiness
New VAT penalties for late VAT returns and payments
HMRC is introducing new penalties for VAT returns that are submitted late. These replace the old default surcharge system. The penalties apply to all returns, even if it is a nil return or a return that claims a repayment from HMRC. This new regime will affect all VAT periods starting on or after 1 January 2023.
Is it worth registering for VAT voluntarily?
Read this article to find out whether it is beneficial to register for VAT voluntarily #VAT #voluntaryregistration
VAT flat rate scheme – is it worthwhile?
The VAT flat rate scheme is a simplified scheme that can save work. Instead of working out the VAT that you need to pay over to HMRC by deducting input VAT from output VAT, you pay a fixed percentage of your VAT-inclusive turnover. The percentage depends on the nature of your business.
VAT - Entertaining Expenses
VAT cannot be recovered on business entertainment expenditure. This includes the gratuitous provision to customers or clients of hotel accommodation, food and drink or tickets to events.
VAT for Beginners
Most purchases carry a VAT charge. Value Added Tax (VAT) is levied on most business transactions and on many goods and some services.
VAT - Motor Expenses
The treatment of car motor expenses for VAT purposes can be quite complex.
VAT Cash Accounting
Under the cash accounting scheme you account for VAT on the basis of payments you receive and make, rather than on invoices you issue and receive. The main benefit of this scheme is that you don't have to pay VAT on invoices you have issued until your customers pay you, although it also means you can't reclaim VAT on purchases until you pay your suppliers. You get automatic bad debt relief because, if no payment is received, no output tax is due.
VAT Annual Accounting
With the Annual Accounting Scheme you complete one VAT return per year instead of each quarter. The advantages of using the scheme are that...
Only one VAT return is required per year and you have two months in which to complete it.
Cash flow is helped by regular monthly payments.
You can choose the VAT return year that you want.
Should I register for VAT?
In broad terms, and subject to certain exceptions, a business will be required to register to charge and pay VAT once annual sales reach a pre-set annual threshold, which is currently £85,000.
Domestic reverse VAT charge for building and construction services
The domestic reverse VAT charge for building and construction services was due to come into effect from 1 October 2019. However, in early September it was announced that the start date had been put back one year. As a result, the charge will now apply from 1 October 2020.
VAT Reverse Charge for Construction Services
The VAT domestic reverse charge for building and construction services comes into effect from 1 October 2019. The reverse charge represents part of a government clamp-down on VAT fraud.
VAT reverse charge in the construction industry
Autumn Budget 2018 announced a new measure, designed to counter fraud in the construction industry, which has seen gangs of criminal traders artificially extending the chain of supply of labour services, then failing to account for all the output VAT due to HMRC by collecting the VAT on the supplies (sales) and then going "missing" before passing the VAT on to HMRC.
Making Tax Digital
Many businesses need to start preparing for the major changes that the government’s Making Tax Digital project will impose from April 2019. Preparation for these changes will take time, additional support, and for some businesses the implementation of new accounting software and processes. Therefore it is important to involve your accountants now as they can help facilitate, support, recommend and implement changes to make the transition as smooth as possible.