Compliance with VAT is becoming ever more complex. Investigations from the VAT man can be intense and very time consuming – all the more important that you have an accountant who is successful in negotiations with them. We aim to take best advantage of the reliefs available and the interpretation of the regulations. This is an extremely important feature of the service provided as it ensures peace of mind for all our clients.

VAT Thresholds

If you’re in business, you must register for VAT if your VAT taxable turnover for the previous 12 months is more than £85,000. This figure is known as the VAT registration threshold. The threshold changes – usually once a year announced in the Budget – so you should regularly check your turnover against the current threshold.

You must register for VAT if either of the following applies:

• If you are convinced that your VAT taxable turnover may go over the threshold in the next 30 days alone.
• If you acquire a VAT-registered business as a going concern.

Services with which we can assist you in relation to VAT Registration, and which can be included in our fixed fee package are as follows:

• By Analysing and advising if you need to or if it would be beneficial to register.
• Completion of the VAT registration forms and formalities.
• Advising on the best VAT schemes to use suitable to your business – some you must notify HMRC you are using and some you don’t.

In addition to above the services which we can provide are as follows:

• Completion of VAT Returns – either from your books or we can do the bookkeeping for you. By letting us complete your VAT return it ensures that it will be accurate and that you don’t miss any opportunities to claim the VAT you should.
• Training to employees – we can provide training to your employees on how to complete VAT returns.
• VAT planning.
• Dealing with any contentious disputes that arise with Customs.
• Attendance at VAT inspections.

De-registration Thresholds
The deregistration threshold is £83,000. If your VAT taxable turnover for the year is less than or equal to £85,000, or if you expect it to fall to £85,000 or less in the next 12 months, you can either, stay registered for VAT or make a request to HMRC for your VAT registration to be cancelled

If you decide to stay registered, you don’t have to do anything.

If you want to cancel your VAT registration you must tell HM Revenue & Customs (HMRC) and explain why your turnover has fallen. For example, you might have reduced your opening hours or lost contracts. You’ll also have to give an estimate of your turnover for the next year.

Remember that your VAT taxable turnover includes only the goods and services you sell that you have to charge VAT on, even those that are zero-rated. It doesn’t include sales that are exempt or outside the scope of VAT.