If you are thinking about becoming VAT registered we can help. BridgePoint Accountants can advise you on advantages and disadvantages of becoming VAT registered. We can also help you decide which VAT scheme is best suited for your business model.
Becoming VAT Registered
We are happy to act on your behalf and complete all the required VAT registration forms. If you wish to complete all the required forms we are happy to assist you in that process. Becoming VAT registered requires you to submit your VAT returns to HM Revenue & Customs.
When should you becoming VAT registered?
If your total turnover in 12 month period exceeds £79 000 then you should becoming VAT registered. Failure to become VAT register could result in being fined. You may also voluntary become VAT registered even if your turnover over 12 months is less than £79 000 .
Choosing the right VAT Scheme for your business
Using our VAT registration service we can help you choose the right VAT scheme for your business model. Choosing the right VAT scheme ensure that VAT returns have minimal impact on your cash flow and business transactions.
Most commonly businesses opt to account for VAT on an invoice basis. So VAT will be paid or repaid according the sales and purchase invoices received and issued in a particular period. The only issue to decide then would be whether VAT on a monthly, quarterly or annual basis would be most beneficial. We can advise on this or whether there may be other schemes available which may benefit you.
Cash Accounting Scheme
Some businesses may find that they have to wait sometime before they get paid. With larger customers payment terms of 60 or 90 days can be common. If this is the case then cash flow will be an issue for any business and we don’t want VAT adding to the headache. On a cash basis VAT is accounted for when invoices are paid. This can be a cash flow benefit as a business will only pay over VAT when the customer has paid. Ask BridgePoint Accountants for advice on this.
Flat Rate Scheme
For small businesses the administration of VAT can be a problem. For this reason HMRC allows small businesses to apply the flat rate scheme. For each industry sector HMRC applies a flat percentage to a business’ sales. This can make things a lot simpler for small businesses and could save you money. Talk to BridgePoint Accountants and see if you can benefit.
For more information about types of VAT schemes available visit HMRC website or give us a call regarding your VAT registration and options.