Daventry: 01327 879090
Rugby: 01788 579033
London: 0203 3487 1107
It is not compulsory for all companies to be VAT registered, however, before it is a must to register, some businesses choose to voluntarily do so for a number of reasons.
Whether you are obliged to be subject to VAT treatment because your turnover exceeds the VAT threshold or if you have chosen to be VAT registered, being part of the VAT process requires meticulous bookkeeping and at least one more tax return per year but most commonly four as VAT is most generally processed quarterly.
VAT is a tax added to the cost of your product or service. The tax is collected by you at the point of transaction and subsequently passed on to the government through your annual or quarterly VAT returns. In return for being a collection vehicle HMRC will allow you to claim back any VAT you have paid to suppliers and deduct this from the amount you hand to them. This is the standard VAT scheme, there is also a Flat Rate scheme.
The VAT you collect should not be confused with your own income. It should be kept aside in preparation for your “VAT bill”. Your VAT return is a detailed list of your VAT’able income versus your VAT’able spend. For those reasons the VAT return process can be time consuming and is often heralded as a chore for small businesses despite the amounts you can claim back.
By managing your bookkeeping and cash flow VAT can become a pain free process. Furthermore, great records not only help with your VAT return but can assist you in ensuring you always understand how your business is performing at any time.
At Cottons Chartered Accountants we can advise you on whether your company should be VAT registered or not. If VAT registration would be beneficial to your business or is compulsory, we can produce your quarterly or annual VAT return on your behalf and even assist you with your bookkeeping if required.
As experienced tax advisors and small business accountants we will give you invaluable advice on the more complicated issues like partial exemptions and Transfer of Business that you might not be on top of if you manage the process in house.
Contact us to find out more about our VAT services and what we can do for your business. You can include the VAT process as part of a tax and accounting package for your business covering everything from your statutory accounts to director’s self-assessments. We have offices throughout the Midlands and in London too, have a look at our locations to find your nearest office. Check out who we work with to see what we can do for your business.
Small business owners tend to work in an evolving, fast-moving market and it can be challenging to know how your business should grow in order to be successful in the future.The key to being ahead of the rest is being proactive and innovative whilst taking note of key trends
So, what small business trends are in store for 2018?
Cottons has seen extensive growth with new offices and staff, continued client success and even a brand-new website. In this article we discuss our top news stories of 2017.
As always, it’s been a very busy month here at Cottons! We’ve been training our employees, raising money for charity and of course had lots of festive fun!
There have been recent changes to the requirements of any charity account reports signed on or after the 1st December, therefore some charity accounting obligations have been affected.
We all like to receive gifts but are you aware that there are also tax breaks when giving gifts too!
An article on allowances for entertaining clients/staff and the associated expenditure that will be allowed to be deductible for corporation tax and VAT purposes.
An article covering VAT on Disbursements as a result of the recent tribunal case in which a firm lost their appeal against an assessment from HMRC for Output VAT not collected on recharged local authority search fees.
It’s been another busy month here at Cottons! The company is buzzing with new vacancies, new technologies and new clients. Here’s what’s been going on in detail…