If you run a small business, you’ll want to consider some of these tips to help stay on top of your VAT responsibilities. There are a few options that will help to make your life easier. When you select the correct VAT scheme you’ll avoid being on the wrong side of HMRC.
This in-depth information can help you to determine your VAT liability and you can see the HMRC site here as well. You can learn the value of the added tax.
Top Ten Added Tax Values
- Staying in touch with your HMRC’s value-added tax is easy when you call them at 0845.010.9000 between the hours of 8:00 am to 6:00 pm. You can also visit their website here.
- Registering your VAT is easy once you’re aware of the requirements. It’s required to register if you reach a turnover of over £77,000 in an annual period. You may also do this voluntarily even if your threshold has yet to reach this number.
- Select the correct VAT scheme for your needs suggest WTAX. You’ll gain many benefits if you join the Flat rate scheme that was created to implement the VAT accounting for small businesses. There are other schemes that are available as well.
- Impact to the customers. After you’ve registered for your VAT you’ll have to include it in the cost of the products and the services that you offer. This is going to have an impact on your prices and it may also impact your non-VAT customers as you can’t reclaim the cost.
- Bookkeeping will need to be updated to include the VAT records so that you can complete your returns easily. Ensure that you retain all of your receipts and invoices and keep accurate records.
- Ensure that you keep your VAT secure. Ensure that you keep your documents safe for your record keeping. You may need a separate bank account as well as a corporate tax if you’re a limited liability company.
- Use VAT online. As of April 2012, all businesses are required to submit their quarterly returns for VAT online.
- Direct debits must also be done online as of April 2012. Set up a direct deposit with your HMRC so that they can auto deduct what is owed via your business account.
- VAT penalties will be added if you’re late with your payments or returns. While there isn’t a surcharge for late submissions, there will be a percentage that is charged on VAT liabilities that are owed per the number of late entries.
- When in doubt, be sure to contact your HMRC or your professional advisor who is usually an accountant. These tips will help you to stay on track and you’ll find that it’s easier if you follow these tips and stay out of the penalty box.