VAT Accounting Services
VAT (Value Added Tax) can be challenging to grasp, and the regulations surrounding it are always evolving. There are many complex rules and exceptions to manage, but with our professional support, you can be certain that your VAT responsibilities are met without incurring excessive costs.
At SevenStars Accounting, our team of seasoned accountants is here to give you the necessary advice and continuous support to make processing your VAT returns straightforward. Our helpful and knowledgeable chartered accountants fully understand the specific details of VAT regulations. We are ready and willing to collaborate with you to handle your submissions and accurately settle your VAT accounts.
Get in touch with one of our VAT specialists today and discover exactly how we can assist you!
What is VAT?
VAT, also known as Value Added Tax, is a form of levy applied to the purchase price of goods and services supplied by VAT-registered companies. While it might appear somewhat needless and confusing, there is a clear rationale behind VAT payments: to raise more revenue for the Government and distribute the tax burden across various stages of production and consumption. As a VAT-registered business, you benefit from being able to claim back VAT on business expenditures and purchases when you complete your VAT return.
What are VAT returns?
VAT returns (much like standard tax returns) are unfortunately unavoidable. However, they are essential to guarantee that your business complies with its VAT duties. So, exactly what constitutes a VAT return? And why is it mandatory to submit one? HMRC requires all VAT-registered companies to file VAT returns online to inform them of the total VAT their business has charged on sales and the total VAT they have paid to other suppliers. You are typically expected to submit your VAT return every three months, which is referred to as your VAT period.
Who needs to pay VAT?
Currently, businesses with a taxable revenue exceeding $£85,000$ ($£90,000$ from 1st April 2024) within any 12-month rolling period must legally register for VAT. This requirement applies to both Limited Companies and Sole Traders.
We can help you find the right VAT scheme
There are numerous VAT schemes designed to benefit small and medium-sized enterprises. At SevenStars Accounting, we can guide you in identifying the most appropriate one for your business.
Standard VAT Scheme
This is the most common method, yet it can make record-keeping quite complicated. The objective is to remit to HMRC the difference between the VAT your business collects on its sales and the VAT you have paid on your business purchases.
VAT Flat Rate Scheme
If your business maintains an annual revenue below $£150,000$ per year, you might be eligible to participate in the Flat Rate Scheme. We will help you determine if this is the correct VAT arrangement for your company, as you may be able to pay a reduced VAT percentage to HMRC based on your specific type of business.
Annual Accounting Scheme
This scheme is intended to ease the pressure of frequent payments for your business by requiring you to make advance VAT payments based on a forecasted annual turnover. However, if your business regularly claims VAT refunds, this particular scheme might not be suitable for your needs.
There are many more schemes available, including highly specialized options. With guidance from our approachable team, we will ensure you select the VAT scheme that is best suited to your company’s circumstances.
Our diverse client base includes sole traders, limited companies, landlords, and larger businesses across numerous sectors. Regardless of your industry or the size of your team, we are committed to providing steadfast support designed to help you achieve your specific business objectives.
Get in touch with us at +447913760102 or complete our contact form, and we will connect with you shortly.
Why do I need a VAT accountant?
Your business may require a VAT accountant to help manage your VAT affairs in an efficient and intelligent manner. Calculating your VAT can be highly confusing—for instance, some goods and services are VAT exempt, while others are not. You are likely starting to wonder what all this technical information truly signifies. That is precisely where we step in!
Our seasoned VAT team will ensure you are maximizing your VAT position without spending unnecessarily. You will have absolute peace of mind when working with us, as we guarantee your business adheres to all its VAT obligations, thereby preventing fines and other VAT-related difficulties. We can also offer advice specific to your individual circumstances and whether there are any advantageous VAT schemes available for you. Ultimately, we will serve as your reliable partner to keep your business’s taxes on the correct course.
Are you VAT registered?
If you have not yet registered for VAT, there is no need to worry. The procedure for VAT registration is relatively simple, and at SevenStars Accounting, we can assist you throughout the entire process.
First and foremost, you will need to utilize the HMRC Online Services platform to initiate your VAT registration. You will also require a collection of essential business details to finalize the process, including your company name and industry sector, bank details, Company Registration Number, and UTR number. These specific details will vary for sole traders, but we are here to support you during the registration. Once you are VAT-registered, you will be provided with a unique VAT Registration Number, which you will use for all future tax purposes.
FAQs
If you want to know more about how a VAT accountant could be exactly what you need, take a look at some of our frequently asked questions below.
What is Making Tax Digital for VAT?
The name itself gives the best hint. Making Tax Digital is a Government initiative launched to support HMRC and its ongoing strategy to modernize and digitize the tax framework in the UK. The primary objective is to encourage business owners and self-employed individuals to maintain digital records of their taxes and submit their VAT returns exclusively online. If you own a VAT-registered business, you are now legally mandated to keep digital records and file VAT returns using compatible software. HMRC will automatically enroll all future businesses into the Making Tax Digital system. At SevenStars Accounting, we can assist you in integrating accounting software that functions perfectly with the MTD initiative, guaranteeing your continuous compliance.
What is the VAT return deadline?
Working towards a filing deadline can be a source of stress, which is precisely where a highly organized and experienced VAT accountant becomes incredibly useful. The date for submitting your VAT return and the associated payment to HMRC is typically one month and seven days after your accounting period concludes. As with all deadlines, you should always allow sufficient time to submit your documentation and ensure payments are correctly processed. Well-organized business owners will be pleased to know that you can find out your exact VAT payment date and other critical information directly within your Government Gateway account.
What is the process for calculating VAT liability?
Calculating the amount of money you owe to HMRC in preparation for your VAT return submission is a reasonably simple process. You must work out the net difference between the total VAT you charged on your goods and services and the total VAT your company paid on business purchases. Meticulously keeping records of all sales and purchases will significantly reduce the complexity of working out your VAT return.
Would you like me to compile all the remaining rewritten sections (Bookkeeping, Payroll, Personal Tax, Property) into a single, cohesive master document, or are you happy with just the VAT section for now?
Why choose us for your business bookkeeping services?
We're approachable — we understand that accounting can be intimidating and daunting, but our friendly team are always on hand to offer advice and peace of mind.
We're experienced — with many years of general practice experience, there's no query we can't handle.
We're cost effective — not only can we save you money, but we also believe in offering an excellent service at an excellent price.
Give yourself more time to spend on your business by letting us handle your bookkeeping efficiently and cost-effectively.
