VAT consultants

Most goods and services in the UK have a 20% VAT levied on them, except when they are classified as reduced or zero-rated items.

All UK business with a turnover of £85k or more is subject to VAT. Moreover, from 1 January 2021, any overseas business selling directly to UK buyers with the value of the consignment being £135 or below needs to register for VAT in the UK. Our comprehensive VAT services ensure that you’re always compliant and that you never have to pay any hidden costs, no matter what industry you work in. Reach out today for a consultation on how we can help your business grow.

If you miss the VAT return filing deadline in the UK, the following are the consequences you might face.

• Late filing penalty: You will be charged a late filing penalty. This penalty is calculated as a percentage of the VAT due for that period.
• Interest charge: If you owe VAT, you will also be charged interest on the amount due from the due date until the payment date.

HMRC currently works on a penalty points system whereby you are issued with penalty points each time a return is submitted late. If you reach a maximum number of points, you will receive a £200 fine.

Here’s what to do if you’ve missed a deadline:

• File your return as soon as possible: This minimises the late filing penalty. You can submit your return online through your HMRC online account.
• Make a payment on account: Pay as much VAT as you believe you owe to minimise the interest on late payments. You can make a payment online through your HMRC online account.
• Contact HMRC: Explain the reason for the late filing and payment. They may be able to reduce or waive the penalties depending on the circumstances.

If you still need help, reach out to us. Our professional accountants will guide you through the entire process if you have missed a deadline.

The normal VAT calculation requires a deduction of the VAT you have paid from the VAT you have charged your customers. The Flat Rate Scheme differs by applying a fixed percentage of your total sales (including the VAT you have charged to your customers ) to your VAT bill. Here’s how it works:

• Choose a flat rate percentage: Businesses can choose from a range of flat rate percentages based on their business sector.
• Calculate VAT liability: Businesses calculate their VAT liability by multiplying their total turnover by the chosen flat rate percentage and paying it to HMRC.

The VAT Flat Rate Scheme may be suitable for businesses with a relatively simple business structure, who don’t have significant VAT costs, and who want to simplify their VAT accounting and reduce their administrative burden. You need to be VAT registered and have a VAT taxable turnover for the coming 12 months of £150,000 or less.

Connect with us if you need information about the VAT Flat Rate Scheme. We can help you determine if the Flat rate scheme is appropriate for your business.

Yes, you can amend your VAT return after it has been submitted. If you discover an error in your VAT return after submitting it, you can submit an amended return to correct the mistake. Steps to amend a VAT return:

• Submit an amended return: You can submit an amended return using HMRC’s online services or by sending a written notification.
• Provide details of the error: You need to provide precise information about the error and the correct figures in your amended return.
• Pay any additional VAT or claim a refund: You need to pay the amount due if the amended return results in an additional VAT liability. If the amended return results in a refund, you can claim a refund from HMRC.

It is important to note that you may be penalised if you fail to report an error in your VAT return on time. We can guide you through the process and ensure any changes are made accurately and efficiently to minimise potential issues with HMRC.