Her Majesty’s Revenue and Customs are quite specific about this; if your business has a taxable turnover that is greater than £83,000 a year, you must register for VAT. What is VAT? VAT is value added tax. It is levied on certain purchases – from IT equipment to supplies – and must be paid. However, the way you repay the VAT generated by your business is a minefield of complexities. The team at Prestige Business Management can help shine a light of understanding in the wilderness of VAT compliance.

The Basics

VAT, for registered businesses, is a painful experience. However, we can help you understand the basics. VAT is a value-added tax that is levied on the sales of goods and services in the UK. It is based on the value you add onto products and services and the levied amount derives from this sum. However, not all businesses need to register for VAT. As above, if your taxable turnover is greater than £82,000* then you must register with HMRC.

Remember VAT is not just something a business applies, it is something it accepts. VAT is a duopoly of shared financial experiences insofar as the company will apply VAT to its services and products whilst being charged vat on the services and products it purchases. Remember, if you are a small business with a lesser turnover than the qualifying minimum, it might be a good idea to register as some companies spend more on VAT-based items than charge VAT on services and products. Another beneficial purpose of registering is to make the business seem more legitimate and approved by HMRC.

What Prestige Business Management can do for you?

Prestige Business Management can provide bespoke VAT advice and support services. We can help you choose the right model of repayment – from quarterly to annual. We can provide the right support to help make sure your VAT obligations are above board and legitimate. We can help educate you about key VAT procedures and help you educate your business staff in helping to promote good VAT procedures. If you would like to discuss your VAT registration queries or issues with our specialist team why not call us today on 020 3773 2927 or email us on [email protected] for more information?

 

*  Correct at time of publication