VAT – dealing with the issues
VAT (Valued Added Tax) is a tax that is added on to most goods and services.
As a business owner, you need to know and understand the rules about VAT to ensure they are applied correctly and legally within your business.
For any business turning over more than £85,000 per year it is compulsory that you are registered for VAT and accounting for this in the appropriate manner.
It may also be that even if your turnover does not reach the registration limited it may be advantageous to register for VAT anyway.
The way in which goods and services are treated for VAT purposes depends on what type of transactions you deal with.
Also, there are different rates of VAT in addition to the standard 20%.
As a business, there are a number of questions that need to be addressed to deal with the issues that VAT raises;
- Does my turnover reach the VAT registration limited?
- Do the sales that I make need to have VAT added to them?
- What is the best method of accounting for VAT?
- Due to the type of sales I make, is there a special scheme that needs to be applied for VAT purposes?
- How do I account for the VAT?
- How do I report the VAT to H.M. Revenue & Customs?
- How do I pay any VAT liability?
- What VAT can I reclaim?
For answers to these questions and to learn more about VAT, please complete the form below: