VAT Services

Whether your business is VAT registered or you are contemplating VAT registration, we are here to assist you.

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VAT Services

Value Added Tax – or VAT for short – is a complex tax that impacts businesses across the UK. It is charged on products whenever value is added, either at a stage of production or at the point of sale. As a VAT-registered business, you will need to comply with additional filing requirements from HMRC. At Leewop, we provide a high-quality VAT service, enabling you to dedicate more time to the critical areas of your business.

VAT Services

Our VAT services include:

  • VAT registration/deregistration
  • Making Tax Digital registration
  • Accurate recording of input vat to reclaim/output vat to pay
  • VAT return filing
  • Communication with HMRC regarding VAT issues
  • VAT planning
  • VAT advice

We can act as a point of contact for all your VAT requirements, ensuring that all deadlines are met, whilst avoiding penalties and fines.


What is VAT?

Value Added Tax is a goods and services tax and the rate in the UK is currently 20%. This tax is applied to purchases of goods or services and other ‘taxable supplies’. Some goods and services have a different VAT rate: children’s car seats and home energy, for example, are at a reduced rate of 5% and most food and children’s clothes are zero rated. VAT is a tax which is ultimately paid by the consumer and is not a tax on individual businesses. It is therefore an indirect tax though businesses, which are responsible for reporting fully to HMRC.


Requirements

Business registration for VAT is mandatory if your taxable turnover surpasses £85,000 or if you anticipate it will. However, voluntary registration can be advantageous, especially if the input VAT you can reclaim exceeds the output VAT on sales that you need to pay.

In most cases, as a VAT-registered business, you will need to complete and file a VAT return on a quarterly basis. The completion of your VAT return calculates the amount of output VAT to pay and the input VAT to reclaim. The net figure is what you must remit to HMRC or may be refunded. These quarterly returns must be filed one month and seven days after the end of each quarter.

It is now a requirement for all businesses to be registered for Making Tax Digital, enabling companies to submit their returns digitally through accounting software, such as QuickBooks.


Benefits

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Keep on top of deadlines, ensuring you stay compliant.

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Access dedicated accountants with specialized VAT knowledge.

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Improve cashflow if input VAT is greater than output VAT.

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Ensure your business is running as tax efficiently as possible.


What is the deadline for my VAT returns?

If you are unaware of the VAT return value and your deadlines for payments, you can access them by signing into your VAT online account via the Government Gateway website, or if you use QuickBooks or Xero this information can also be found there.

Your VAT online account will advise on the due date for your VAT returns and when you must clear the payment to HMRC. You usually need to send a VAT return to HMRC every three months. This is known as your ‘accounting period’. The deadline for submitting your return online is usually one calendar month and seven days after the end of an accounting period.

Whatever type of organisation you are running, our team of business accountants in UK can help you ensure you’re set up for success. Contact us today for further advice or to discuss the next steps by calling us on +92 302 4012116 or email contact@leewopconsultancy.com.


FAQ's

Your business will be required to register for VAT if its turnover exceeds the VAT registration threshold.

Businesses that generate taxable supplies, subject to VAT, must monitor the value of these supplies to determine whether they surpass the VAT registration threshold. The VAT registration and deregistration thresholds will remain unchanged for two years from 1 April 2022. The taxable turnover threshold, deciding whether a person must be registered for VAT, will stay at £85,000 until 31 March 2024.

If your business produces taxable supplies below the registration threshold, voluntary VAT registration may be considered. This option could provide the opportunity to recover VAT on costs.

You can calculate your VAT amount online via HMRC website. You can’t use this calculator if you make payments on account or use the annual accounting scheme.

Most businesses must keep digital VAT records and use software to submit VAT Returns.

This depends on the types of products or services you provide.

A VAT-registered business can recover VAT on its costs if it makes taxable supplies or supplies that are outside the scope of VAT that give rise to VAT recovery. However, VAT cannot be recovered in relation to any VAT exempt or non-business activities.

Some VAT costs are always unrecoverable, such as VAT incurred on business entertainment and a valid VAT invoice must be held to support any VAT recovery.

If you are unsure whether you are able to recover any VAT on your business costs, please contact our team of experts who can provide more support.

Making Tax Digital (MTD) will revolutionise how firms in the UK report taxes. VAT-registered companies are now required to maintain their accounting records and digitally submit their VAT returns under the MTD program.

We utilise popular digital accounting software for this, such as Xero and QuickBooks, both certified by the Association of Chartered Certified Accountants (ACCA) and MTD approved.


Why choose Leewop for Your VAT needs?

The process and evolving landscape of VAT returns and eligibilities required for VAT obligations can be complicated and time-consuming. Leewop is, however, able to complete all the necessary work on your behalf and be your dedicated point of contact for all enquiries. We can ensure that you are working in the most efficient means possible, with an ongoing, proactive working approach to improving your business.

At Leewop, our chartered accountants can provide you with all the advice you need, taking the hassle out of your obligations so that you can focus on running your business.

  • A single point of contact for all your inquiries
  • A tailor-made service designed specifically for you
  • Swift response time
  • A dedicated tax department with a wealth of experience and expertise
  • Business heritage dating back over 120 years
  • UK-based accountants with national and international reach
  • Time-saving technology solutions
  • Hands-on partners providing the best advice

What really matters to us is building the long-term relationships our clients are looking for and giving them the very best advice. Beyond our accountancy services, we are here to help you identify the strengths and weaknesses within your business. By tailoring our package of services to your business needs, we can fulfil your expectations, meet deadlines and do the legwork for you.

What’s next?

Arrange a consultation to find out how we can help you. Call us today on +92 302 4012116 or email contact@leewopconsultancy.com.

Talk to Our Team

Transitioning to Leewop from your current accountant is a swift and straightforward process.

Leewop is a prominent accountancy practice in the UK, catering to clients nationwide. Regardless of your location, we are here to assist you. We will allocate an accountant to help you grow your business and enhance its efficiency. Contact us to discover how we can assist you today.

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