Value Added Tax (VAT)
VAT is a tax that’s charged on most business transactions in the UK.
Businesses add VAT to the price they charge when they provide goods and services
- to business customers – for example a clothing manufacturer adds VAT to the prices they charge at a clothes shop
- to non-business customers – members of the public or ‘consumers’ – for example a hairdressing salon includes VAT in the prices they charge members of the public.
There are several rates of VAT and some goods and services are ‘exempt’ or outside the UK VAT system altogether.
When you must register for VAT
If you’re a business and the goods or services you provide are ‘taxable supplies’ you’ll have to register if your turnover for the last 12 months has gone over a specific limit – called the ‘VAT threshold.
You can voluntarily choose to register for VAT if you want, even if you don’t have to. Why would you do this? - there are some good reasons!
- Have you considered Cash Accounting?
- Would you benefit from the Flat Rate Scheme?
- Do you need to apply Partial Exemption?
- Are you selling products that fall into the Second Hand Margin Scheme?
- Is it hot food – what are all those catering rules?
- When is work on property zero rated, standard rated and what are the other rates?
- What happens when you work for someone overseas, or when you are importing or exporting goods?
- What is a Transfer of Going Concern TOGC?
Do you need some help with this?
We can help with VAT registration, VAT Return preparation and submission, through to advice on how VAT and Duty works when you import and export goods.
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