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Value Added Tax (VAT)

Since April 2019, Making Tax Digital (MTD) is mandatory for businesses with a taxable turnover above £85,000. The new HMRC system means that the new methods for processing VAT returns are fully automated, digital and online based. We are here to ensure you are compliant with MTD with a plan of action every step of the way.
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Value Added Tax (VAT)

Since April 2019, Making Tax Digital (MTD) is mandatory for businesses with a taxable turnover above £85,000. The new HMRC system means that the new methods for processing VAT returns are fully automated, digital and online based. We are here to ensure you are compliant with MTD with a plan of action every step of the way.
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Value Added Tax (VAT)

Since April 2019, Making Tax Digital (MTD) is mandatory for businesses with a taxable turnover above £85,000. The new HMRC system means that the new methods for processing VAT returns are fully automated, digital and online based. We are here to ensure you are compliant with MTD with a plan of action every step of the way.
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Almost three-quarters of all businesses in the UK pay their VAT on a quarterly basis. For many hard-pressed companies, it is truly amazing how quickly the time for your quarterly VAT payment comes around, with all its attendant headaches. Our team have both the technical knowledge combined with practical experience to solve any VAT matters that your business might face. Our Vat accountants work closely with you to provide timely and cost-effective solutions to your problems, along with advice on VAT registration, VAT accounting, VAT appeals, VAT enquiries and disputes.

How we can help with your Value Added Tax (VAT).

Small businesses, in particular, find this regular requirement a time-consuming task when every transaction for the last three months needs to be reviewed. Just the administration alone relating to VAT returns almost needs its own SOP manual.

Everything needs to be assessed for VAT liability, all your VAT calculations need to be checked, and your VAT submission must be completed accurately.  

So far so stressful, but the worry doesn’t end there.

It is vital that you don’t fall foul of the complex and sometimes frustratingly obscure VAT laws. Yet again you might think you’ve got all bases covered, but the regulations keep changing, and you need to stay abreast of the implications for your business.

After you have submitted your return, HMRC gives you just over a month to make the payment. If you have made a mistake on your return or missed the submission or payment deadlines even by a day or so, you may well be required to pay a penalty. HMRC may even decide to send in the VAT inspectors to conduct a rigorous investigation of all of your records. More time is lost and more time spent away from your core business activities.

We have an experienced and professional team of tax experts who are well versed in the convolutions of VAT legislation and requirements and who will help you avoid making expensive errors.  

Finding the right VAT scheme for you.

Originally the VAT scheme was reasonably easy to understand. If you supplied VAT liable products or services, all you had to do was add 20% onto the customer’s bill, take off the VAT you paid to the supplier and give HMRC the difference.

However, along the way, HMRC has made several changes to how VAT is operated and have brought in different VAT schemes which benefit different kinds of small businesses with the aim of helping with cash flow and reducing the administration required.

VAT Standard or ‘normal’ Accounting scheme

At the moment under the standard VAT scheme, on a quarterly basis you have to pay HMRC the VAT element on any of the invoices you have sent out, whether they have been paid or not. Under this scheme, you can reclaim VAT on your own purchases, even if you haven’t yet paid your supplier. If you don’t receive payment of an invoice and it becomes a Bad Debit, you can claim relief but not until after six months.

VAT Cash Accounting scheme

The VAT cash accounting scheme is popular with small businesses who have constant problems with cash flow because you only need to pay the VAT when you have been paid yourself. This is a boon for businesses whose clients are late payers. Also, if you never receive a client’s payment and it becomes a bad debt, you don’t have to pay the VAT to HMRC. On the other hand, you might have problems if you have bought a large amount of stock on credit terms, and then find you cannot reclaim the VAT.

VAT Flat Rate scheme

If you estimate your turnover at £150,000 or less, excluding VAT, for the next twelve months, you are eligible to join this scheme. Under this scheme, you cannot reclaim VAT on any purchases you have made, with the exception of capital expenditure over £2000. This means you don’t need to keep a record of the VAT element of all your purchases. You will pay a different percentage of VAT depending on the type of business.

How we can help with your VAT return.

Getting you registered

Most businesses do need to register for VAT, but some don’t. We will discover whether you need to register and go through the VAT registration process with you or look at whether deregistration might be the best option. We will recommend the best approach for your business interests.

The best VAT Scheme for you

All of HMRC’s VAT schemes have their own benefits and drawbacks. Why not take advantage of our in-depth knowledge and expertise and discuss which scheme would be the best and most cost-effective for your business?

We will look at your business in detail and assess which of the VAT schemes would suit your needs. We will recommend the best options in straightforward language and guarantee not to confuse you with accountancy jargon.

VAT administration

We can help with the management of your quarterly VAT returns making sure they are submitted with 100% accurate information and within the submission deadline, all of which will save your valuable time and avoid any penalties. This includes evaluating VAT elements on your sales and purchases, checking amounts of VAT you owe and how much you can reclaim.  

Switching to Digital accounting

In April 2019 HMRC introduced an initiative called ‘Making Tax Digital’ aimed at ending the need to send in a tax return in the standard way. This has brought additional pressure to many businesses

Our professional tax experts are right up to date with all the latest Digital solutions and software and can help to ensure you are filing your VAT information correctly.

Our Services

Suretax is an award-winning accounting firm providing tax and advisory services to companies of all sizes.
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Office locations

Suretax Accountants Liverpool Office

Suretax Liverpool

The Plaza
100 Old Hall St
Liverpool L3 9QJ

T: 0151 272 0212
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Suretax Accountants Wallasey Wirral Office

Suretax Wirral

94 Wallasey Road
Wallasey, Wirral
CH44 2AE

T: 0151 272 0211
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Suretax Accountants Manchester Office

Suretax Manchester

111 Piccadilly
London Road
Manchester, M1 2HY

T: 0161 399 0211
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"Intelligent workflows reinvent how organisations get work done."

— Julie Cameron, Managing Director of Suretax

Talk to our tax experts today to see how Suretax accounting can help you and your business.

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