Vat Services Offered By London Bookkeepers
If you are running a small or medium sized business, VAT issues may give you nightmares. It is worse if you don’t have any knowledge of accounting or are qualified as an accountant. Also, even if you have some experience in accounting, you need a VAT adviser to help you get most of the things right. Luckily, you can benefit from the expertise services offered by us.
Some of the specialist vat services our London bookkeeping and vat services company offers are as follows:
1. FREE VAT REGISTRATION FOR ALL NEW CLIENTS
If you have a turnover of over £85,000, the law requires that you must mandatory register to become a VAT registered business. You may not know the procedure to follow for VAT registration or the answers to a myriad of different questions HMRC requires you to answer in the vat registration process. In some cases, you may be too busy to do some of these things or simply not have the vat experience or qualifications. As a result, you need help from a specialist London bookkeeping services company. We are not only qualified London accountants, but we are also Chartered Accountants with years of experience in all vat matters. We will advise you on the registration process and update you on the latest VAT requirements and regulations as part of our Bronze, Silver or Gold packages. We are offering a limited special offer of free vat registration for all new clients, so we take away all the hassle of vat registration with HMRC.
2. Completing VAT returns
As an entrepreneur, you may not know how to calculate the amount of money to pay to HMRC as VAT. Also, calculating VAT on items such as sales on canteen meals may be complicated. Furthermore, determining VAT payable on proceeds from the sale of assets, the commission received, and insurance claims may be difficult. But with help from a London Bookkeeping company, you will be pleased to have all these done within no time. We are vat experts that will also help you to interpret VAT legislation in areas where ambiguity exists. We provide vat advice on international trading and interstate transfers and complex vat transactions. We have clients in the UK, Europe and a growing Chinese client base.
3. Determining VAT schemes and eligibility
This service is intended to help businesses take advantage of VAT schemes. Also, it helps you avoid penalties associated with getting VAT wrong. Hiring a competent company such as London Bookkeepers will help you to know the exact amount payable as VAT to HMRC from:
- Receipts from loaning or leasing equipment
- Commissions the business gets from selling items for other people
- Goods and services used by the staff or business for personal or private use
- Samples and gifts costing more than £50 but which have been given to business free of charge.
- Any item bartered, partly exchanged for non-monetary payment.
- Refunds under retail export schemes.
- Margin Schemes for second hand goods.
- Treatment on partially exempt vat items.
- Vat treatment for international sales to Non Eu countries.
- Vat treatment for sales to EU countries
- How to reclaim vat on UK purchases, How to treat Vat on Eu Purchases and Non Eu Purchases.
4. Advice on VAT saving opportunities
It is not always possible for businesses to recover all the money due from debtors. So, it is sometimes necessary to write off some of the debts as irrecoverable. When you do this, you are entitled to some relief for VAT paid on customers that defaulted. But you may not be privy to such info if you are not working with an experienced Vat Specialists in London such as London Bookkeepers. Also, receiving certain supplies from Irish suppliers entitles you to some VAT waiver. So, you need help from a competent VAT expert.
5. VAT Groups Service
The service enables businesses with associate companies to be treated as a single entity on VAT matters. Forming a VAT group helps a business to file a single VAT return for a given period. But one should understand the impact of forming a VAT group before creating one. A competent company should help you form such a group and understand your responsibility. Note that group members will be severally and jointly liable for members VAT liabilities. Please take professional advice or contact us for further clarification.
6. Reclaiming Foreign VAT
Depending on the location of the business, if you are a UK trader with immovable property in an EU country, you will likely incur VAT in that country. Knowing the procedure to follow to claim for a refund may be a challenge. So engaging a VAT expert, could help you reclaim the VAT paid.
7. VAT recovery Methodology Service
Having a good Value Added Tax recovery methodology is essential. It helps in cases where the business engages in exempt or activities outside the scope of their mandate. The service will help you to determine the amount of VAT payable from each activity. Thus, you may consider engaging a competent company to help you get this right.
8. What Vat Scheme should I adopt.
For businesses that have registered for VAT, the amount of VAT is computed on the invoices issued. It means that VAT returns must be filed irrespective of whether the business has paid or not. But for companies that make supplies to entities that are not VAT registered, they should account for VAT based on the money received- this is called “cash accounting” and is the most popular vat scheme. In this case, the suppliers can only pay VAT after the customers have paid and only claim input vat once the invoices have been paid. There are other schemes such as the Flat Rate Scheme where vat is paid as a percentage of gross sales including vat dependent on the trade or profession of the vat tax payer. Other more complex schemes are the second hand margin scheme to name one of many.
9. When can I file my Vat Return ?
In the Irish Republic, VAT returns are filed bi-monthly. But in the UK, businesses may be allowed to pay VAT every months or every quarter or can make an application to file their vat return annually. Also, companies that apply for refunds regularly are allowed to file VAT every month. It will enable them to receive their VAT refunds earlier. The most common vat frequency is filing vat returns every 3 months known as quarterly filing. The vat payer has one month and seven days after the vat quarter to file and pay his or her vat return.
10. Canteens VAT services
Businesses that operate staff canteen, and charge their staff on a subsidized basis, should account for VAT on revenue. But they are entitled to make deductions to VAT incurred on the underlying cost. This is a tricky calculation that requires an expert to compute the amount due to HMRC as VAT.
Understanding UK VAT laws
Having looked at some of the VAT services you are likely to enjoy when you contract VAT experts in the UK, it is essential that we spare some time to look at UK VAT laws.
VAT Law Before and After Brexit.
The VAT regime in the UK was introduced as one of the conditions to admit the UK in the EU. So it was majorly based on the EU VAT laws that were implemented in the UK legislation. The laws were introduced in 1973 but have undergone several amendments. Areas that have been amended include setting the rules for compliance and registration, intrastate and returns. Note that The VAT regime is run and operated by the HMRC. It issues publications on how the UK Vat system is to be administered.
For non-UK firms that imports, buys and sells goods in the United Kingdom, they must follow and comply with VAT laws. The laws revolve around reporting and accounting for UK VAT. Even though, foreign companies that provide services in the UK need not register for VAT. Eu law takes precedent over UK tax law but with the advent of the vote on the 23rd June 2016 and the decision of the British people to leave the European vote taxpayers are awaiting further clarification on vat law and it is expected that UK tax law will determine all further vat regulations.
VAT registration Threshold
Any non-established business which supplies taxable goods and services in the UK should register for VAT. It should do this irrespective of its turnover. But if it is a foreign business which trades in the UK and is Tax/ GST/VAT registered in their home country the threshold for VAT registration is nil. If the company is EU VAT registered but selling its goods and services through the internet to consumers in the UK, it should register for VAT if its revenue is above £70,000 per year.
Registering for VAT For Distance Selling
Foreign companies must complete Form VAT 1. The form is meant for businesses that supply services or taxable goods to the UK. For those engaged in distance selling (selling over the internet), they are required to fill VAT 1A. Also, the law requires that non-UK businesses have a bank account in the UK. If they do not have a bank account, they should pay VAT due using a cheque and attach an explanatory note to HMRC.
How to register for VAT
Non established businesses may opt to use an agent to register for VAT in the UK. They may also register via a local VAT registration. Also, they may choose to register for VAT online. With the advent of Making Tax Digital all vat returns must be filed by HMRC third party compliant software such as Quickbooks. For non-European Union businesses, they need to appoint a representative or an agent in the UK. The tax agent will be liable for interest, penalties or tax due.
What to check for a genuine UK VAT number
VAT registration will take about 4-6 weeks after submitting the VAT registration form. You will then be issued with a unique VAT number consisting of the Prefix GB and 9 digits. An entrepreneur must wait for this number before they start trading. They should then comply with UK rules including filing regular returns.
Situations that require foreign entities to register for VAT in the UK
- Importing good through the UK into Europe
- Selling goods and services to the UK through the internet
- Buying and selling of goods in the United Kingdom
- Holding consignment or stock of goods in the UK before it is sold locally or abroad Organising exhibitions and live events where participants pay before they gain access to the venue
- Companies that are a non-VAT trader but which receives services in the United Kingdom via the reverse charge rule.
- Supplying goods and services to the UK