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VAT Return Services

The VAT is a consumption tax that is placed on a product when the value is added; at a stage of production or point of sale. Vat tax calculation is the responsibility of the taxpayer; he must ensure that the right tax is paid at the right time. If an unpaid VAT error is identified during an inspection by the HMRC, it can raise an assessment that can go back four years (or more) with interest and penalties.

Filing monthly VAT returns can be challenging for VAT registered businesses as you need to demonstrate the entire value of goods that have been despatched to any EU country and the total amount of arrivals that have been received in their VAT return. However, an expert VAT accountant from Naail & Co. can guide you through the entire process quickly.

VAT Rates

Different VAT rates are depending upon the type of transaction, such as:

  • Standard at 20%
  • Reduced at 5%
  • Zero
  • Exempt

Most businesses are VAT registered, so they are required to submit a VAT return to the HMRC every three months; this represents a significant administrative burden on small businesses. If your company turnover is less than £150,000 a year, then the Flat Rate Scheme is the best option for you.

Small businesses can take advantage of the Flat Rate Scheme by paying a fixed rate of the gross turnover to figure out how much VAT must be paid to HMRC every quarter. If your business uses this scheme, you will still charge VAT as normal and issue VAT receipts to your customers as usual. However, your quarterly VAT return should become a more straightforward process as you will only be required to calculate your total sales and apply a flat rate of VAT.

How to Register for VAT Flat Rate Scheme?

At Naail & Co., we have helped hundreds of small businesses register to the VAT Flat Rate Scheme. Your business will need to fulfil the eligibility criteria outlined below to register to this scheme:

  1. Your business must be VAT registered (the turnover exceeds the threshold value of £85,000 in turnover).
  2. The annual turnover of your small business must be lower than £150,000.
  3. Your business must sell products or services which are taxable and not exempt from VAT.
  4. You cannot register again if your business left the Flat Rate Scheme in the last 12 months.
  5. Your business cannot be associated with another company.
  6. Your business cannot be a part of capital goods or margin VAT scheme.

We can advise you whether you should be filing your returns or if the VAT returns are too complicated for your business. Sometimes it can be worth outsourcing your VAT returns to professionals like us, who can take away the stress and headache without costing you a lot of money in fees. Furthermore, we can also help you reclaim VAT charged on goods and services that you sell to your customers.

Please get in touch with us if you need help with VAT services or if you have an upcoming inspection or facing a dispute; we will solve all your VAT issues quickly.

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