VAT accountants services
for your small business
The qualified and experienced team prepare & submit your all-year-round VAT reporting and returns on your behalf.
The perfect mix of accounting software, tax experts and dedicated client manager could be just what you are looking for whilst staying compliant with HMRC’s Making Tax Digital rules.
CashFlow Managment
Financial Forecast
What is VAT
Value Added Tax (VAT) is the tax you must pay when buying goods or services. If you are a business, you may be required to register for and collect VAT.
Businesses with a turnover of more than £85,000 (known as VAT registration threshold) must register to pay and add VAT on the products and services they buy and sell and pay this to HMRC when they file their quarterly return.
VAT in the UK is typically charged at:
- 20% on goods and services
- 5% is applied to some health, energy, heating, and protective products and services.
- 0% is applied to a range of products and services to do with health, building, publishing, and kids’ clothing.
- Pinpointing your business’s ‘star performers’ as well as those who are underperforming.
Some services and sales of goods are outside the scope of VAT (like stamps, financial and property transactions). Instead, businesses charge VAT based on what they sell and how much money they make.
VAT in the UK is typically charged at:
The government gives your business a unique nine-digit number, prefixed with ‘GB’.
Company numbers are only given to VAT-registered businesses and can be found on your registration certificate, which also outlines when your company passed the registration threshold and when your first VAT return is due.
What is my VAT payment date?
If you need to check your VAT Return and payment deadlines, you can do this by signing into the Government Gateway and accessing your VAT online account.
Your VAT online account will provide you with the following:
- When your VAT Returns are due
- When the payment must clear HMRC's account.
The submission and payment dates tend to be the same, and calculated one calendar month and seven days after the accounting period end.
Example: If your VAT period ends on March 31. Then, by May 7, you will have to pay the VAT owed. If paying by direct debit, payments are usually taken three days after the VAT return deadline.
Get In Touch
Looking for a bespoke management reporting for your business? Speak to one of our specialist!
Online VAT calculator
Visit HMRC’s website to determine when you must make your VAT payment for the current accounting period. You will be unable to use this calculator if you pay on account or use the annual accounting scheme. Use an approved accounting software provider to send your VAT return, and keep digital records.
How does VAT work?
Your company will need to submit VAT returns to HMRC on a monthly, quarterly, or annual basis. The return summarises the VAT collected on sales and the VAT incurred on expenditure during that period. If the collected figure exceeds the VAT incurred, you pay the difference to HMRC. If the VAT incurred is greater, HMRC will refund the difference.
Paying your bill
HMRC only accepts a direct debit or internet banking as a method of payment. They do not accept cheques. If you are having trouble making payments, contact them straight away.
Accounting
- Statutory accounts
- Management accounts
- Bookkeeping
- Business plan
TAX
- Tax investigation service
- Capital Gains Tax
- VAT
- Tax advisory
others
- Registered office address
- Self Assessment
- Payroll Services
- Corporation Tax
Is your business ready for making tax digital for VAT?
Making Tax Digital (MTD) is changing how UK businesses do their taxes. It is now mandatory for VAT-registered businesses to keep records and submit their VAT returns digitally.We use approved accounting software Xero, QuickBooks and FreeAgent, and we are fully accredited and MTD compliant.We will help you file your VAT returns digitally and provide VAT advice and assistance whenever you need it.
What goes in management reporting packs
Choosing the right VAT plan can make or break your business. Defining your products and services and your predicted earnings can all help you identify which scheme is best for your venture, lowering your VAT rate. Once you have picked an appropriate scheme, we will assist with the registration process, advise you on switching to a more tax-efficient arrangement and keep you up-to-date with VAT law changes.
When you sign up for one of our price packages, you will have automatic access to our award-winning accounting software packages Xero, QuickBooks and FreeAgent and will oversee the filing of your digital VAT return. In addition, as members of the Institute of Chartered Accountants, we will provide you with expert advice and assistance whenever you require it, so your business is compliant with this new government initiative.
Fusion Chartered Accountants, we offer qualified and experienced accountants who work tirelessly on your behalf, delivering VAT reporting to ensure you are compliant and flagging up any potential risks. We will minimise your liabilities and compliance issues, ensuring all aspects of VAT transactions are captured correctly, and all month-end processes are actioned on a timely basis.
Our VAT returns service
We love to plan ahead which means we will get everything ready for submission well before your VAT deadlines. Of course, there is a bit of paperwork involved, but hey, hand it over to us to deal with, that’s what we are here for!We will also provide the relevant VAT returns reports and any amount that you need to pay. We will also advise you on EU/EC sales based on your accounts and their position. Handling your finances gives us the knowledge to advise you on related matters so all your decisions help yourbusiness boom.
Our VAT registration service
Your dedicated accounting manager will handle all your VAT issues. They will assess your company’s tax efficiency and advise you to switch if necessary. They will also register you for the appropriate VAT scheme, manage the registration process, and inform you of new laws and regulations.
It is not essential to register for VAT straight away until you hit revenues of £85k. If your company is growing and is likely to hit this figure soon, get ahead of the game and register now, giving you complete peace of mind to run and grow your company!
Flat Rate VAT Scheme
The VAT Flat Rate Scheme was set up to make sure businesses pay about the same amount of VAT without having to do as much paperwork as other VAT schemes.The VAT amount paid to HMRC depends on the type of business you run and how much you charge your customers. You keep the difference between what you charge and what you pay HMRC, and you can’t get back the VAT you pay on your purchases, except for certain capital assets over £2,000.
A flat rate of 4% applies to stores that sell food, newspapers, tobacco or children’s clothes, and a rate of 14.5% applies to accountants, bookkeepers, computer/IT consultants, structural engineers, architects, and surveyors.
Category of Business
Accountancy or book keeping
Catering Services Including restaurants
& takeaways
Entertainment or Joumalism
Financial Services
Hotel or accommodation
Legal Services
Publishing
Social Work
IT Consultants
Current VAT Flat rate (%)
14.5
12.5
12.5
13.5
10.5
14.5
11
11
14.5
Standard VAT accounting
Standard VAT accounting means that financial activities are reported as they happen, no matter when the payment is made.This has the potential to harm your business cash flow since you must pay VAT over to HMRC for services or goods sold, which you have not yet received the money for.If, on the other hand, you have not paid for goods purchased, you can claim the VAT on the invoice received, resulting in a positive impact on your cash flow.
Cash VAT accounting
If your clients pay immediately but you buy on credit, the cash basis may be preferable because you would recuperate VAT sooner.On the other hand, if your consumers take much longer to pay, but you pay your suppliers’ bills promptly, the invoice basis may be preferable.
FAQ's
If you are VAT registered, your income and expenses are likely to be shown ‘net’ of VAT, i.e. any VAT charged/ incurred is not included in the profit and loss account. Also, the profit and loss account only shows ‘revenue’ transactions that relate to the commercial activity of your small business.
You usually submit a VAT Return to HM Revenue and Customs (HMRC) every 3 months. This period is known as your ‘accounting period. The VAT Return records items for the accounting period such as your total sales and purchases.
The most common set of quarterly VAT return dates are:
1st January – 31st March.
1st April – 30th June.
1st July – 30th September.
1st October – 31st December.
1st January – 31st March.
1st April – 30th June.
1st July – 30th September.
1st October – 31st December.
To change from quarterly to monthly VAT returns, you can log on to your VAT online services account and select ‘change registration details’. Alternatively, complete the form VAT484 and sent it to HMRC in the post.
If you are late filing a VAT return or making a payment to HMRC, you will enter into a 12-month probation period known as a ‘surcharge period’. If you file any further late returns or make more late payments during this period, you will incur a penalty and the surcharge period will be reset for a further 12 months.
You can generally reclaim VAT on goods you bought up to 4 years before you registered for VAT and services you bought up to 6 months before you registered as long as the following conditions are met; The goods were bought by you as the entity that is now registered for VAT.