Value Added Tax (VAT)
Value-added tax (VAT) is a consumption tax on goods and services that is levied at each stage of the supply chain where value is added, from initial production to the point of sale. The amount of VAT the user pays is based on the cost of the product minus any costs of materials in the product that have already been taxed at a previous stage.
KEY TAKEWAYS
Value Added Tax (VAT) is a form of indirect tax borne by the buyer of a taxable goods included purchase price. For the seller, it is a tax only on the value added to a leviable product, material, or service.
Businesses will pay VAT when it supplies, delivers VAT leviable goods or and services on the value addition and the business can reclaim the VAT amount back on purchases, or will pay VAT following a special VAT schemes approved by HMRC for your business.
HOW CAN WE HELP?
- Assist in VAT Registration.
- Advice on VAT planning and administration.
- Use of the most appropriate scheme based on your industry type and neature of business.
- VAT control and reconciliation
- Help with completing VAT returns.
- Negotiating with HMRC in disputes and representing you at VAT tribunals if necessary.
How to get VAT Registered?
If your business is involved in selling supplies of taxable goods or services then you must register for VAT as soon as your turnover (sales) reaches the statutory registration threshold. Currently registration threshold set at immediate past 12 months sales on a rolling basis turnover is £85,000.
You can also register for VAT voluntarily, even if your turnover is below the statutory registration threshold VAT can add much desired credibility to your business and it can also be of benefit if the situations below apply to your business:
If most of your customers are VAT registered and can claim back the VAT that you have added to your sales. If none of the above apply, then it may be better to delay registration until you have to.
We provide expert advice for all size businesses.
We are committed to providing expert advice for businesses of all sizes. Whether you’re a startup, a small business, a mid-sized company, or a large corporation, our team of experienced professionals is equipped to offer customized guidance tailored to your unique needs.
