VAT

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Value-added tax (VAT) must be paid by a limited company when their business reaches the threshold of £85,000 in turnover. VAT can be difficult to navigate and some businesses are taken by surprise when they end up owing money from the VAT they’ve charged. Working with an accountant who understands VAT inside out will put you at ease, ensuring that you know what you owe, and when you owe it.

Many of our clients have questions about VAT – we’re here to answer them. Call 01322 250 001 or email info@adams-accountancy.co.uk to discuss VAT, VAT returns, or anything else you need.

What is VAT and do you need to be registered?

Value-added tax, or VAT, is added to the cost of nearly everything we buy in the UK. If your business is VAT registered, you will need to add VAT to your applicable products and services. It’s currently charged at 20% on most products and services.

VAT is payable on:

  • The sale of goods or services
  • Hiring or loaning goods
  • Selling business assets
  • Commission
  • Selling to staff
  • Goods that aren’t used solely for business
  • Gifts

There may also be circumstances where it’s beneficial for a business to be VAT registered, despite having a turnover lower than the £85,000 threshold. If this is the case for your business, we will be able to advise you further and weigh up all the pros and cons. There are various VAT schemes available, so we will find the right one for you and handle the VAT registration process.

Get a quote for VAT services

    VAT returns – working out what you owe

    VAT returns are used to calculate the amount of VAT a business has charged, and the amount it has paid. They are usually completed every three months, and there are two possible outcomes:

    • You owe money to HMRC. If you’ve charged more VAT than you’ve paid, the difference must be paid to HMRC.
    • You can reclaim VAT. If you’ve paid more VAT than you’ve charged to customers, you can claim back the difference.

    Taking the stress out of VAT returns

    Completing a VAT return can be complicated, and completing a VAT return every three months can be a drain on company resources. Many businesses choose to work with an accountant to complete their VAT returns for them. We work on VAT returns for many businesses and will be happy to help you, calculating what you owe and keeping you in the loop so there are never any surprises.

    We use technology that makes it simple for you to send VAT information to us digitally. If you prefer, you can give us your paperwork and we’ll complete your VAT returns from this. We work in the way that suits you.

    Suppliers

    Contact Adams Accountancy

    Let’s talk about VAT. Adams Accountancy is here to support your business. Call 01322 250 001 or email info@adams-accountancy.co.uk