Where do you start with VAT!
VAT is probably the most complex tax that businesses have to deal with. The constant changes to legislation as well as the ever moving threshold make this area daunting to most businesses.
There are standard rated items, 5% rated items, 0% rated items and then VAT exempt items to deal with. There are also several VAT schemes to choose from such as Standard, Accrual, Cash Accounting, Annual, Flat Rate etc.
The deadlines are also very tight as under the standard VAT scheme, a business has only around five weeks to collate the information together and submit it over to HMRC. For instance, if your VAT period ended on 31 March, the deadline for submission and payment would be 7 May.
Although there is a legal threshold where it becomes compulsory to register for VAT, sometimes it may work out cost effective to voluntary register for VAT. If a business is under the threshold then it may be able to reclaim any VAT that has been incurred.
There are just too many complex areas regarding VAT for us to detail here but don’t despair, here at MJF Accountancy in Liverpool we can register you for VAT, explain in detail how to account for it, give you software to capture the data, calculate the VAT correctly and finally submit it over to HMRC on your behalf.
So what are you waiting for?
Call us today on 0151 724 3960 to arrange your free consultation.
Alternatively, you can email us at firstname.lastname@example.org or you can use our website contact form.