Value Added Tax

Mobile-friendly – We can do the VAT returns of your business as well as your accounts. If we do both, then we will give you a 25% discount on the fee for the accounts to reflect the savings in time which we make. The VAT Report which we prepare for you will show the average rate of VAT which you are paying on your gross turnover. This can have two uses:

Budgeting

You may estimate the VAT liability of your business for the next quarter by multiplying your gross receipts by the average rate of VAT. This means that you can get the cash ready in order to meet your liability.

The Flat Rate Scheme

Smaller businesses, having a net turnover less than £150,000 per year, may consider a change to the Flat Rate Scheme. We will look at your average VAT rate and compare it to the Flat Rate for your particular industry, and we can tell you if you are likely to save tax by adopting FRS. Another advantage of FRS are that you may be able to deal with us entirely by e-mail. You will need to leave FRS if net turnover exceeds £230,000 per year.

It needs to be said that the VAT rate at 20% is just too high. It was 8% when VAT started in 1972. Effective VAT rates on the Flat Rate Scheme can be a little bit lower, by 1 or 2% say, and we always do what we can to cut your tax bills and make life easier for you.