Smarter accounting
A business is required to register with HMRC for VAT when your taxable turnover is over £90,000 per year and then make quarterly VAT submissions.
If your taxable turnover is below the VAT threshold you are not required to register for VAT.
However, below this threshold you can still register for VAT, as it may be beneficial but there are implications too to be considered.
Alterledger assist clients with their VAT requirements including:
– Registration for VAT
– Advice on VAT schemes inc Flat Rate, Margins etc
– Preparation of monthly & quarterly VAT bookkeeping
– Preparation and submission of VAT Returns every quarter
– Deregistration of VAT
– VAT compliance checks & investigations by HMRC
The benefits of registering for VAT can be outweighed by the additional administration required and higher prices to your non-VAT registered customers. Alterledger can advise you of the advantages and disadvantages of voluntarily registering for VAT. Once you are registered for VAT Alterledger can also administer your VAT accounting and submit all your returns to HMRC.
The best way to make sure you are up to date with your VAT is to use an accounting system which tracks all your VAT sales and purchases as you make them. Online accounting software such as Xero can automatically pull out all the transactions from your bank accounts and make sure they are included in your VAT return.
It was previously common for service based business to register for the Flat Rate Scheme (FRS) for VAT, Alterledger can assess if this is suitable for your business. For most start-ups and service based businesses the FRS will cost you more than the standard scheme for VAT. Speak to Alterledger to see if you can save money by switching from the FRS.
Legal House 101 Gorbals StreetGlasgow G5 9DW
Telephone: 0800 8321 268 advice@alterledger.co.uk
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