VAT and Tax Compliance

VAT Returns and all aspects of VAT Compliance are complex. Investigations by the VAT office can be intense - you need to ensure that your VAT returns are completed correctly.

What is VAT

Value Added Tax (VAT) is the tax you must pay when you buy goods or services. If you are a business, you may be required to register for, and collect VAT.

Businesses with a turnover of more than £85,000 must register to pay and charge VAT on the products and services they buy and sell. Other businesses can choose to register for VAT voluntarily. Businesses charge their customers VAT, but must then pay this to HMRC when they file their quarterly VAT return.

VAT in UK is typically charged at:
  • 20% on goods and services
  • 5% is applied to some health, energy, heating, and protective products and services
  • 0% is applied to a range of products and services to do with health, building, publishing, and children’s clothing
Your VAT number

Company VAT numbers are given only to VAT-registered businesses and can be found on your business’ VAT registration certificate. This important piece of paperwork will also outline when your first VAT return is due and the date from which your company went over the VAT registration threshold and therefore became required to register.

VAT is one of the most onerous and complicated tax regimes imposed on a business. Many businesses inadvertently overpay or underpay their VAT and with the constant stream of changes to the regulations and demands from HM Revenue and Customs (HMRC), this is an area where expert advice is crucial. After all, no one wants to be paying the Exchequer more than they have to.

We can provide help with all aspects of VAT to ensure that you are not paying any more or less than you need to. Staying VAT compliant is an important task – by allowing us to help, you can get on with what really matters to you and your business.

We are able to assist you in the following areas for VAT –
  • VAT registration – We can advise you if you need to or if it would be beneficial for you to register
  • Our accountants would be able to complete the VAT registration forms and formalities
  • Advising on the best VAT schemes to use suitable to your business
  • Completion of VAT Returns or training on how to complete them
  • We can provide you with the support and guidance needed for the Domestic Reverse Charge (DRC) changes
  • VAT planning
  • Dealing with any contentious disputes that arise with H M Revenue & Customs

We complete VAT returns in good time to ensure you avoid any penalties.

We will ensure that your business is registered for Making Tax Digital (MTD) and all of your VAT returns are being submitted through compatible software, to be compliant with HMRC.

All VAT-registered businesses with a taxable turnover above £85,000 now have to keep digital records and VAT returns have to be submitted through a compatible software. If your business has a taxable turnover under £85,000, you will be required to submit your VAT returns through MTD software after April 2022.

We always make sure you are tax and VAT compliant, however this does not eliminate the chance of a tax investigation. HMRC have the powers to carry out income tax, corporation tax and VAT investigations at random.

With the ever-increasing risks of full tax or VAT enquiries and investigations, it’s a must to be protected from the accountancy costs of dealing with it as the amount of work involved is often substantial.

We cannot prevent you from being investigated by HMRC, but we can help to ensure that you get the best possible support and advice without having to worry about the cost. Tax Disputes can go on for many years’ it is essential to ensure you have an experienced team working on your behalf. We make sure that any dispute will not be concluded until we have a fair result.

Get in touch with S Smith & Co Accountants in Scunthorpe, Epworth & Brigg today on Scunthorpe 01724 848343, for a free no obligation quote for our experienced team to ensure you are VAT and Tax compliant.