The Link Between Accountants and VAT
As leading accountants in London, our accountants are well versed with the concept of VAT due to their studies. This is because VAT is an indirect tax and is a good way of teaching the concept of ratios and the basic workings of tax accounts. As their studies progress, they learn more about the different taxes and how VAT fits into the bigger picture.
Accountant on Duty has a thorough understanding of VAT implications due to their studies and expertise. An experienced charted accountant often proves to be invaluable when dealing with VAT transactions as some transactions can become quite complex to follow when there are multiple offsets or foreign exchange transactions.
A chartered accountant is also mandated to keep up with the latest developments in the profession, as a result, your accountant on duty will know if the VAT rate has changed for a particular group of goods.
VAT and Small UK Businesses
If your taxable income exceeds £85000 you must register your business for VAT. Upon doing so you will receive a certificate of registration confirming your VAT number when to submit your first VAT return and payment, and your businesses’ “effective date of registration”. Obviously, once this effective date kicks you will have to follow all the rules related to VAT – prescribed by the Value Added Tax Act of 1994.
The trick comes in knowing what to do with and how to treat VAT in the following situations: when your business earns more than the proposed threshold when you acquire another business that pays VAT, if you qualify for a VAT exception or if a sudden and lucrative contract takes your business above the threshold in the next thirty days.
Our chartered accountants are more than willing to assist with any VAT queries that you may have pertaining to your business.
An Overview of VAT
Value Added Tax (VAT) is one of the government’s largest sources of income, introduced in 1973 to replace the Purchase Tax. The Value Added Tax Act of 1994 is the primary source of legislation regulating VAT. VAT is typically levied on most goods and services in the UK. Vat is also levied on goods within the EU, leading to complex transactions and regulations attached to this. The standard rate of Vat is 20% but maybe less for some goods such as clothes.
VAT is often referred to as an indirect TAX as the business i.e., the seller must pay Vat rather than the consumer who bears the burden of paying for the VAT. Registered businesses must pay VAT to Her Majesty the VAT they have charged on their products. This Vat may be offset by purchases that the business has made of other goods with VAT.
VAT Accounting in London
If you are seeking assistance in resolving any VAT issues, then you have come to the right place. We will help you to ensure that your business stays compliant and up to date with all VAT returns and submissions. We will also ensure that all your records correspond with the VAT return that you must submit.
Having qualified accountants examine your VAT return is extremely beneficial as it will help to ensure that your business does not incur any penalties or fines. Furthermore, a qualified accountant will know if you can apply for any exceptions or relief based on the latest information available.
Accountant On Duty offers other accounting services other than VAT Accounting, such as payroll solutions, tax evaluations, and returns assistance, management accounting assistance, financial accounting services and assistance to start-up businesses. Get in touch with Accountant On Duty today to find the financial solution that fits your business best!
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