VAT

VAT Registration, Processing & Submissions

VAT (Value Added Tax) is one of the most complex and difficult area of taxation, frequently amended with new rules and procedures, which affects most businesses.

Every business in the UK (unless exempt) must register, submit and pay VAT if their annual taxable turnover goes over the threshold set by HMRC (For accounting year 20/21 this has been set at £85,000) on a 12 month rolling period. This includes Limited Companies, Partnerships and Sole Traders.

VAT can be very confusing. Some goods and services are VAT exempt, whilst others aren’t. Failure to comply with your VAT obligations can result in fines and other issues. While processing your VAT, your accountant will go through your entire business activities and calculate the VAT charged amount vs VAT paid amount (via expenses & purchases) and submit a detailed overview of your accounts to the HMRC either monthly or quarterly. There also are VAT scheme options available to you if your turnover is under £150,000.

You can also voluntarily register for VAT, however all the rules set aside for VAT submissions and payments must be adhered to. VAT can be difficult to understand and the regulations surrounding it are constantly changing. There are many rules and exceptions to navigate.

Muhit & Co accountant’s VAT Return services allows you to focus on the day to day running of your business by outsourcing VAT returns task to us. We can help you minimise VAT related issues with HMRC and save money for your business by ensuring you pay the right VAT amount and do not miss any VAT payment deadlines when we submit your HMRC VAT return. Our accountants provide full support with HMRC for VAT return, including VAT registration, VAT filing, answering your queries, and VAT refund or returns problems.

At Muhit & Co a leading accounting firm in Whitechapel London , we provide experienced financial accountants who can help new companies with their VAT registration and all HMRC related paperwork.

Assessing the ideal VAT scheme for your business
VAT Registration
Completion and Submissions of VAT Returns (Monthly or Quarterly)
Advice on VAT planning and administration
VAT control and reconciliation
Planning to minimise future problems with HMRC
Negotiating with HMRC in disputes and representing you at VAT tribunal

How is VAT calculated?

VAT applies to the majority of goods and services. VAT-registered businesses are effectively unpaid tax collectors, charging VAT on the products they sell and paying the consumer tax on to HMRC.

Businesses are also liable to pay VAT on any of the purchases they make. Instead of transferring collected VAT on to HMRC every time a transaction happens, companies submit a VAT return indicating the total they’ve collected and the total they’ve paid out within the tax quarter. Your VAT payable will depend on how much VAT you have charged, and how much you have paid.

How often should I pay my VAT?

Typically, if you’re a VAT registered business you need to submit a VAT return and any payments due to HM Revenue and Customs (HMRC) on a quarterly basis.

VAT cash accounting scheme?

Normally, VAT returns are based on the VAT invoice date for your sales and purchases. This may mean you can end up having to pay HMRC the VAT due on sales that your customers have not yet paid for. The VAT cash accounting scheme instead bases the return on payment dates, both for purchases and sales.

What is the Flat Rate VAT scheme?

The Flat Rate VAT scheme is a method of VAT accounting that allows you to pay a smaller percentage of VAT to HMRC (e.g. 9%-16%) rather than the full standard rate (20%). The condition to this arrangement is that in the most part the business will not be able to reclaim any VAT on the purchases made.

Can I charge VAT before being registered?

You cannot charge VAT on your sales until you have received your VAT Registration certificate. The VAT registration certificate will show the “effective date” from which HMRC will consider you registered for VAT.

How long does it take to get a VAT Registration Number?

On average it typically takes about 7 days to obtain a VAT registration number after application. All decisions are taken by HMRC on an individual case-by-case basis.

Do I need to be VAT registered?

You can register for VAT at any time as a sole trader, partnership or Limited Company. If however your sales turnover exceeds the threshold set by HMRC (2020/21 – £85,000) or is predicted to do so in the near future then it will become mandatory to register for VAT.

Experts Accountants for Small & Medium Businesses in Whitechapel, Brick Lane London.

Muhit & Co Certified chartered accountants is a widely-established firm which has a network that spreads across London with an office located at Whitechapel in Central London . The firm has been established since 2004 with a team of qualified accountants and tax specialists who have various industrial experience. We work with a large number of local businesses, sole traders and Individuals helping them achieve their goals through our pro-active and informative service.

VAT

VAT Registration, Processing & Submissions

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