UK VAT - UK VAT return - UK VAT registration

UK VAT

Value added tax (VAT) was introduced in the UK on 1 April 1973. VAT is a tax on consumer expenditure and is collected on business transactions and imports. The basic principle is to charge VAT at each stage in the supply of goods and services ( output tax). If the customer is registered for VAT ans uses the supplies for business purposes,he will receive credit for this VAT (input tax). The broad effect is that businesses are not affected and VAT is actualy borne by the final consumer.

UK VAT REGISTRATION

An registered business must register if it has made £64.000 of taxable supplies in the last 12 months, up to any month end, or if it expects to make £64.000 0f taxable supplies in the next 30 days. Our company can assist you with registration process. A registered business can deregister if it can satisfy HMRC that taxable supplies in the next year will not exceed £64.000. Small businesses with taxable turnover of up to £150.000 can opt to use the "flat-ratescheme". A single rate, which varies with the type of business, is applied to all receipts, and no VAT is claimed on costs. The single rate is lower than 7/47 to compensate for lost input tax. Small businesses with taxable turnover of up to £1.35m can use the cash accounting scheme ( only paying VAT to HMRC when customers have paid ). The annual accounting scheme ( fiking a single VAT return each ear instead of one every three months) is also available with turnover up to £1.35m.

VAT RATE

The standard rate of VAT is 17,5%, or 7/47 of the consideration received for making a supply. A lower rate of 5% ( or 1/21 of the gross receipt) applies to some supplies such as domestic fuel and power, installation of energy saving materials in houses, and some comversions of residential property. A zero rate applies to a range of supplies including most food, books, new houses, and children's clothes. Certain other supplies are exempt, which means no tax is charged to the customer, but the supplier cannot recover VAT on costs. These include many land-related supplies,insurancefinance, eduction, health and welfare, and non profit sport clubs.



VAT CONSULTANCY



UK VAT Consultant is essentially required, not because you must pay an additional fee, but because you must not bear additional trouble. VAT, an abbreviation for the Value Added Tax, is a complicated notion right from the first step i.e. registration, to the later stages involving filing of tax returns. For instance, there are 28 boxes in the VAT registration, from which must be duly filled in order to apply; not to forget, many boxes require supporting documents thus implying more work. The idea is not to scare you, but simply make aware of the complexities that lay ahead and thus suggest referring to a UK VAT consultant for streamlined operations.



How can a UK VAT consultant help?

UK VAT consultant can eradicate the explicit and the many implicit issues surrounding the UK VAT requirements. This consultant, in a sense is one stop shop for all VAT related operational requirements. Few areas where a UK VAT consultant can be referred to include:



VAT Registration – This head entails filling a detailed form and enclosing a number of documents and complying with many other endless formalities for registration. With a UK VAT consultant, VAT registration implies simply making an online request for services of a consultant.

VAT Recovery / Refund – VAT recovery comes into picture, if the entity registered with UK

VAT amount settlement / Tribunal – Even authorities could be wrong and end up making mistakes. But chances are less that they would accept the same and make dedicated efforts to rectify. The UK Vat consultant comes to rescue here. This nominated company or person takes up the challenging task of checking all procedures, thus ensuring right payments towards this end.



Filling Returns

Accounting Assistance – Mistakes in this domain are not very easy to rectify. Even minor errors, could inflate the overall figures and even minor omissions could create undesired legal hassles at a later date. It is therefore suggested to seek assistance of qualified UK VAT consultants, who over time have acquired the art of precise accounting. With the guidance of these professional, chances of mistakes are minimal.

Planning Assistance – This point essentially implies careful deployment of different applicable VAT schemes and clauses to ensure minimum tax submission. The same can be undertaken only by those who have complete updated knowledge and relevant expertise in the field. Who better than a UK VAT consultant would then be the right resources for this? Many can learn / follow up the legislation changes; only few can interpret them rightly.