ZATRS ACCOUNTING provide every service including registrations, monthly and quarterly filling of VAT returns, compliance checks and investigations.
In UK, the VAT (value-added tax) was introduced in 1973, replacing Purchase Tax. It is the third-largest source of government revenue, after Income Tax and National Insurance and is administered and collected by HM Revenue and Customs, primarily through the Value Added Tax Act 1994.
VAT is levied on most goods and services provided by registered businesses in the UK and some goods and services imported from outside the UK. All businesses that provide “taxable” goods and services and whose taxable turnover exceeds the threshold must register for VAT. Businesses may choose to register even if their turnover is less than that amount. All registered businesses must charge VAT on the full sale price of the goods or services that they provide unless exempted or outside the VAT system. The default VAT rate is the standard rate, currently 20%. Some goods and services are charged lower rates (reduced or zero) and Exempt.
Registered businesses must pay over to HMRC the VAT they have charged on their goods or service (known as output tax) but they may offset this with the VAT they have incurred on goods or services they have purchased that relates to their own onward ‘taxable’ supplies (known as input tax). A separate scheme, called The Flat Rate Scheme is also run by HMRC. This scheme allows a VAT registered business with a turnover of less than £150,000 per annum to pay a fixed percentage of its turnover to HMRC every 3 months. The scheme is designed to reduce hassle for small business and allow new companies to keep some of the VAT they charge to their customers. If your business has annual turnover £85,000 then it is compulsory to VAT registered your company.
You can voluntarily VAT registered your Business if your annual turnover is less than £85,000; why you do that? Sometimes business can maximise their profit if they are VAT registered company. Our expert accountant can help you to look at this.
Are you spending hours every month reconciling your books just so you can work out your VAT? Let ZATRS work on the numbers and let them tell you what VAT you need to pay. It will save you time and money and you can concentrate on your business or doing the things you love. Talk to us about cost-effectively managing your VAT, so you don’t have to.
Share
