Running a business can be rewarding but also a headache at times, to say the least! The accounting side of a business can be particularly challenging if you’re not a numerical person and don’t have the resources or knowledge to sort out your tax and VAT yourself. Employing an accountant to do this for you may also not be possible given the cost. This is where we can help as we give you all the tools and knowledge to be able to complete these tasks for yourself. Our general tax advice and VAT advice for small businesses services gives a helping hand in financial duties. Get a better understanding of what VAT advice for small businesses we can offer by reading on!
Value Added Tax (VAT) is a consumption tax that is collected every three months via a VAT return. It is a requirement by law that every VAT-registered business charge VAT on any business goods and services that are sold. VAT should also be charged on goods that are hired or loaned, any commission that your business makes, and items which are sold to staff such as food and drink. Non sales should also be charged VAT such as gifts, bartering and part-exchange.
All VAT has to be paid to HMRC and it is important to include VAT in all sales as HMRC will still charge your business VAT whether you remember to charge it or not. The VAT return reports the total of VAT you have paid and charged. You can also claim any VAT you have paid on business goods and services via your VAT return. Whether you have paid too much VAT or too little, HMRC will ensure the difference is paid.
The amount of VAT you charge depends on the VAT rate and there are 3 different rates including standard rate, reduced rate and zero rate. Most goods and services are charged at standard rate, but if you’re unsure whether this includes your goods, take a look at the official government website to check your VAT rate. Once you know which is the right VAT rate for you, you must charge this rate on your invoice and show the amount on your VAT return.
There are a number of VAT schemes which aim to keep your VAT bill as low as possible. Here at Jonathan Ford, we can advise you on which scheme is best suited for your business. For instance, the Flat Rate Scheme means that you pay a fixed VAT rate and keep the difference between what you pay to HMRC and the rate you charge to your customers. To be entitled for the Flat Rate Scheme your business must have a VAT turnover of £150,000 or less. Find out more about the Flat Rate Scheme by getting in touch with one of our advisers, or if this doesn’t sound like the right scheme for you, we can advise you on the the best and most suitable alternative.
If sorting your VAT yourself sounds alien and something that you don’t have the time for, fear not as that is where expert accountants at Jonathan Ford can help. We can free up your time by filling out your VAT returns for you, so you focus on other important business matters. So if all this VAT talk is boggling your mind, get in touch today by calling 0151 426 4512 for all of the general tax advice and specialist VAT advice for small businesses that you’ll need!
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