What is VAT?
VAT is an important – and sometimes confusing – part of any business that sells goods. Simply put, VAT – or Value Added Tax – is a general government tax that is placed or applied on almost all goods and services sold. VAT is put in place to generate revenue and improve the economic state and is percentage-based. This means the greater the price of goods, the more the consumer pays.
The standard VAT rate in the UK is currently 20%.
However, sometimes rates vary in terms of reduced rate (5%) and zero rate (0%), which means it’s always useful to use a VAT accountant for VAT advice.
For example, there are sometimes occasions when you may have paid more in VAT than you should have done (often over any given business quarter) or may not understand what rate your goods fall under.
A VAT consultant can help with all VAT advice for businesses, whether you’re unsure of how to apply VAT to your sales or you’re struggling to understand or manage the VAT status of your business.
Why is VAT important?
First of all, VAT is important because any mistakes you make can be very costly! Getting your head around VAT can not only benefit the economic state of the UK, but can also lead to better cash flow and maybe even a tax rebate as a business!
By using a qualified VAT accountant, you’ll have help with all the nitty-gritty important stuff, such as being properly registered for VAT. You can get help with your VAT returns, avoiding penalties and different schemes such as the annual accounting scheme or the flat rate scheme.
Why you should use a VAT Consultant from Go Impartial
If all of this sounds confusing to you, it may be worth outsourcing and hiring a VAT consultant from Go Impartial.
Here are the benefits of using Go Impartial for VAT advice and how our experts can help:
- VAT registration
- VAT disputes and appeals
- Customs duties
- VAT planning
- Structuring VAT transactions
- International VAT issues
- Partial exemption
Our VAT accountants also help with specialist sectors that may have special added tax rules such as care homes, hotels, catering, non for profit, student unions and sports clubs.
VAT Advice
The basic rule is that if your sales exceed an annual gross profit of £82,000 – this is when you need to register for Value Added Tax. And if you don’t? You could get into trouble!
Some companies offer to pay VAT even beneath this threshold – as it gives the impression that their company is bigger than it actually is and can improve credibility.
Any VAT-registered business will receive a company VAT number, which can be found on your VAT registration certificate. This useful paperwork will also state when your first VAT return is due.
Once we’ve helped you register and understand what VAT you need to pay, there’s the added confusion over different ways to pay.
The two primary ways to pay are case by case and flat rate VAT.
Case by case involves your company declaring all invoices and receipts for the quarter – both incoming and outgoing.
Flat rate VAT will involve your company being assigned a flat rate tax percentage based on your industry. You then simply apply this rate to the total of your invoices.
This scheme is designed for smaller businesses that have an annual turnover of less than £150,000. Although this scheme seems straightforward and less complex, it can actually mean you may end up paying more tax than you need to.
Get in touch to find a VAT accountant and VAT advice
If you’re unsure of what scheme you should use to pay VAT (case by case or flat rate VAT), it may be worth getting in touch with Go Impartial who can connect you with a qualified VAT consultant to help.
By outsourcing to a VAT accountant, they can offer you comprehensive support on VAT advice including customs duties, disputes and appeals, international issues and more.
For all VAT services and VAT advice, contact Go Impartial.
