Value Added Tax
VAT is charged on the supply of most goods and services supplied by registered taxable persons and, in principle, payment is made to HMRC every three months of the excess of VAT on sales invoices over VAT on purchase invoices.
When your annual taxable turnover (i.e. your fee income) reaches a certain annual level, you are obliged to register for VAT. However you may also register on a voluntary basis even if your turnover is not that high, and by doing so you are entitled to reclaim VAT on many of your purchases. We will apply to HMRC for your company to be registered for VAT and liaise with the VAT office on your behalf. We would normally register you on the VAT flat rate scheme (FRS) unless it seems inappropriate for your circumstances, but our staff will advise you on the best option.
Our standard book-keeping template provides a simple method for calculating the tax due each quarter and you should therefore be able to complete your VAT returns without difficulty. We will of course always be happy to assist you if required.