(VAT) is a form of indirect tax levied on the value added to goods and services. It’s charged at each stage of the production and distribution process, and businesses are responsible for accounting for it and submitting regular returns. Most goods and services are subject to VAT, with a few exceptions, such as food, children’s clothes and books are zero-rated. The standard VAT rate in the UK is 20%, although some items are taxed at a lower rate of 5% (such as domestic fuel and power) or are exempt from VAT altogether (such as postage stamps, and insurance etc).
As a business, it’s your responsibility to register for VAT if your taxable turnover is above the current registration threshold, which is £85,000.
Since 1 April 2022, VAT registered businesses have to keep digital records and submit their VAT returns using the software for VAT return periods starting on or after 1 April 2022. This is known as Making Tax Digital (MTD). Our VAT return service can help take the hassle out of dealing with VAT for your business at a reasonable fee. This includes using specialist software to prepare and submit your VAT returns, so you can be confident that you’re complying with the latest rules. We can prepare and file VAT returns on behalf of our clients, ensuring that all deadlines are met.
HMRC offers voluntary VAT schemes which can help small businesses save money on their VAT. The three most common schemes are flat rate, annual, and cash accounting schemes.
If you’re a small business owner, it’s worth considering whether these VAT schemes could save you money. At Aahil & Co, we can help you navigate the eligibility requirements and paperwork associated with these schemes. We can also help you with VAT planning to ensure that you’re maximising your VAT savings.
There are many complex areas of VAT law that businesses need to be aware of to remain compliant. These include partial exemption calculations, the capital goods scheme, the tour operator’s margin scheme and the place of supply of goods or services.
Businesses can often find it difficult to stay up-to-date with the constantly changing VAT rules and regulations. Our experts can help businesses remain compliant with all aspects of VAT, ensuring that they avoid any penalties. We will also liaise with HMRC on behalf of our clients in case of any queries or audits.
If you would like to know more about our VAT return service, please do not hesitate to get in touch. We would be more than happy to discuss your specific requirements and offer advice on your business’s best course of action.