VAT can be an incredibly stressful and complicated process due to the seemingly endless and sometimes confusing rules. It can be overwhelming and difficult to know whether you are correctly handling your VAT or if your business is overpaying or underpaying. If after reading this article you decide an accountant can help with your situation, keep in mind Millhouses Accountancy for Sheffield VAT support (also operating in Rotherham) and able to provide invaluable assistance for your VAT needs and bookkeeper support.
WHAT IS VAT?
VAT stands for Value Added Tax and is a consumption tax that is collected through a VAT return every 3 months. VAT is required to be charged by law on any business goods or services that are sold by a VAT-registered business.
WHERE IS VAT PAID?
VAT is paid to HMRC and VAT needs to be included in all sales as you will still be charged by HMRC whether you included it or not. You can claim the VAT that you have paid back and if you have incorrectly calculated it the HMRC will ensure the difference is paid.
HOW MUCH VAT SHOULD BE CHARGED?
This is where individual VAT advice & support may be more beneficial as the VAT that you charge is dependent on the VAT rate that applies. There are three rates; standard, reduced and zero. For the majority of goods and services standard rate applies but if you are not too sure on the rate you should be charging you can check the VAT rate on the government website.
There are also schemes available which can help keep your VAT bill low. Our Sheffield VAT support will be able to help advise you on whether there is a scheme that suits your business and your eligibility.
- If your turnover for the last 12 months exceeded £85,000 or you think it will exceed this soon you need to register for VAT.
- VAT should be added to invoices separate from the goods so you can clearly see the cost of VAT, the rate and the total sum.
- If your business turnover is below £85,000 you can choose to register for VAT if you think it will be of benefit to your business.
- VAT returns and payments need to be made on time otherwise you may be subject to penalties.
LOOKING FOR SHEFFIELD OR NOTTINGHAM VAT SUPPORT?
Getting a Sheffield accountant to provide VAT advice & support can help take the stress and headaches away from VAT. We can save you time and make sure your business gets VAT right. Call us to speak to an experienced accountant and bookkeeper for more information on our VAT advice & support can help you.
For more information about our accountancy services, bookkeeping services or XERO services, call us on Sheffield 0114 345 0960 or Nottingham 0115 882 0356