What is VAT?
VAT is a tax added to goods and services sold and the current rate is 20%. (On 8 July 2020, the government announced that it would introduce a temporary 5% reduced rate of VAT for certain supplies of hospitality, hotel and holiday accommodation, and admissions to certain attractions.)
A business registers for it when it reaches the turnover threshold of £85,000 per annum. So far, so good, you probably knew all of that. However, valued added tax is one of the most complicated taxes to understand, as a result, it can be easy to make mistakes when you are not aware of the pitfalls.
At Accurox we advise you on all aspects of this confusing tax. Moreover, we’ll alert you when your activities have any liability and you need to register for value added tax. In some cases, it can be an advantage to voluntarily register, even if you don’t meet the threshold, and we can advise on whether this would be appropriate for your business.
Getting VAT right is vital. HMRC have considerable powers to audit company accounts and to penalize businesses that get it wrong. It can be easy to fall foul of the process, as some items are exempt, zero rated or charged on reduction, leading to costly mistakes.
Avoid unnecessary stress and worry, and allow Accurox to take over your VAT accounting and submission on your behalf.
Making a Claim
Getting it right is vital, as HMRC have considerable powers to inspect company accounts. Likewise, they have the power to penalise businesses that get it wrong. Confusion over what items are exempt, zero rated or charged on reduction, can lead to costly mistakes.
Making Tax Digital (MTD)
Making Tax Digital (MTD) is a government initiative to move tax returns into digital accounting. Value added tax was the first tax to be phased into MTD in April 2019. At Accurox we use cloud accounting software, Xero, to manage the process. We set your business up with Xero, to ensure your business is MTD compliant.
In short, avoid unnecessary stress and worry. Allow Accurox to take over your VAT accounting and submission on your behalf.
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