Most businesses in the UK with annual turnover in excess of the VAT Registration limit will need to be registered for VAT and should submit VAT Returns to HM Revenue & Customs on a regular basis.
Certain types of businesses, such as those making only exempt supplies, are not required to register for VAT, irrespective of turnover. Examples are commission-based insurance brokers and financial advisers, book-makers and certain businesses in the health and welfare sectors.
VAT is a highly complex and rapidly changing area of tax, requiring an understanding of general VAT principles as well as knowledge of the VAT status of different categories of income and expenditure.
It can also be time consuming for a small business with many Returns often completed at the last minute. Dealing with VAT Returns in this way can be stressful and can lead to errors.
Penalties for failure to properly complete and submit VAT Returns are becoming harsher. There have been cases where the overall amount of VAT is correct, but penalties have been levied for technical breaches.
There are several key points to help efficiently deal with VAT:
We assist a number of clients in dealing with their VAT obligations. This may take the form of an annual compliance review, but can often be the completion of the VAT returns combined with book-keeping or management accounting services.
If you require advice or would like to discuss how we might assist you in this area, please contact us.