VAT Return Accountants

Skynet Accounting & Bookkeeping can help with your VAT returns

Is your business VAT registered and on need of an accountancy company that can ensure your VAT return is up to date and more importantly, correct? Skynet Accounting have been filing VAT returns on behalf of our clients for many years and will always ensure we meet the needs of our customers obligations correctly.

VAT stands for “Value Added Tax” meaning it is a TAX liability you need to pay and must get this right!

Business with turnover >£90,000 must register for VAT return. Deadlines are strict and HMRC penalty charges are significant.

Not all businesses have the same type of VAT scheme and managing them is not as simple as running a report from a software system. We fully check for compliance purposes and reconcile the VAT liability/refund to capture any errors and build an audit trail for HMRC in case of enquiry.

It is very common for HMRC to inquiry for adhoc spikes so without any delays we can respond and satisfy HMRC team’s expectations.

In simple way of accounting for VAT in general is charging good and services at 20%. However, there are so many different rules, eligibility, exemptions etc so you may be eligible for charging at reduce rate of 5% or even at zero rate 0%. There are other factors may need to be accounted appropriately as and when happens in a VAT period such as applying reverse charge, exporting & importing etc.

HMRC simplified the way VAT registered businesses calculate and account for VAT and here are the different types of VAT schemes in summary:

VAT Flat Rate Scheme

You can only use this scheme if you’re a small business with an annual taxable turnover of £150,000 or less excluding VAT. The amount of VAT you pay depends on your industry and type of business as set out by HMRC. You pay fixed rate of VAT and can’t claim vat on purchases excluding capital assets over £2,000. You get 1% discount if you are in your first year as a VAT registered business.

VAT Cash Accounting Scheme

Pay VAT to HMRC when your customer pays you rather than when you invoice them. Threshold is £1.35m or less.

VAT Margin Scheme

Pay VAT on the value you add to the goods you sell rather than on the full selling price of each item like second hand goods, work of arts, antiques, collector’s items (but not when you sell precious metals). The rate is 16.67% (1/6th)

VAT Retail Scheme

Calculate the VAT once with each VAT return rather than calculating it for each sale you make. Retails scheme can be used together with cash accounting scheme or annual accounting scheme based on:

Point of sale scheme: at the time of sale either at 20%, 5% or Zero VAT rate
Apportionment scheme: buying goods for resale only, apportioning purchased goods over sales in a VAT period based on the applicable rate either at 20%, 5% or Zero VAT rate
Direct calculation scheme: small proportion of sale at one VAT rate and majority at another rate. You need to calculate expected selling price (ESP) first and apply applicable rate at 20%,5% or Zero VAT rate.
Catering and takeaway food: Supply of prepared food and drink and Not all food and drinks are exempt from VAT.
Pharmacist: VAT registered health professionals may recover the VAT they have incurred on purchases however there are specific rules for dentist and overseas medical practitioners
Florist: only applies if you are a member of Interflora, Teleflorist or Flowergram.

VAT Annual Accounting Scheme

Complete one VAT return each year instead of monthly or quarterly. Threshold is £1.35m or less

VAT is not only about running a report from a software system to file a VAT return. Your business VAT calculation can be complex, and we provide full compliance check as per HMRC VAT notices applicable to you and reconcile your VAT return that will give you complete peace of mind.

There is no need to make your VAT return time consuming, increase levels of stress or even get it wrong! Focus on your business, we can manage your VAT compliance work.

So, why not get in touch with us to book your free initial consultation.

Book now