VAT
VAT is a complex tax that many businesses struggle to navigate and understand. Our team will work closely with you to form a real understanding of your business structure and needs, ensuring you are kept informed of your VAT obligations. Our team is well versed in VAT compliance and advisory, offering the perfect guide to understand the basics of VAT as well as how to follow Making Tax Digital for VAT rules. From reviewing pre-prepared returns, right through to outsourcing of your VAT compliance function, working with our team will give you complete peace of mind.
VAT Advisory
Our team have extensive experience of VAT allowing us to offer assistance and advice on a variety of VAT issues. We are also able to support and safeguard your business from potential penalties and help identify opportunities to mitigate your VAT liability. Whether you are looking to become VAT registered as your taxable turnover exceeding the threshold, or registering voluntary to allow the recovery of VAT on your costs, we are always on hand to provide support and guidance and ensure no surprises from HMRC.
VAT Schemes
There are various VAT schemes available to your business, but it is important to bear in mind some will be more suitable than others depending on various factors like your business structure, turnover, and whether you are more likely to be a net payer or net receiver of VAT. The default scheme is the Standard VAT scheme which means preparing and submitting VAT returns on a quarterly basis. VAT owed to or from HMRC is calculated by deducting VAT on purchases from VAT on income based on dates of invoices.
The Cash Accounting scheme is similar, however VAT is only recognised at the point cash has been paid or received. Other VAT schemes include Annual Accounting and Flat Rate, and our knowledgeable bookkeeping team will be able to assess your business and advise on the most suitable scheme.
Making Tax Digital - VAT
Since April 2019, any entity with a taxable turnover above £85,000 has been required to abide by MTD for VAT. Now all VAT registered businesses regardless of turnover must sign up for MTD for VAT, which entails keeping digital records and using MTD compatible software. This government initiative aims to simplify tax and avoid errors in preparation. Here at Clay GBP, we employ securely encrypted Cloud software and bridging software to meet compliance requirements of MTD for VAT, as well as allowing easier access to key information allowing you to manage your business more effectively.