If the turnover of your business is above a certain level, you must register for VAT. If you are uncertain whether or not you need to register, please contact your RfM accountant who will be happy to advise you.
As a VAT-registered business you are obliged to add the tax to the price of the goods and services you supply to your customers. You must then pass on the money you receive from VAT on your sales to HMRC. You may also be able to reclaim the VAT that has been charged on purchases made by your business.
Companies with turnover below the threshold can choose to register under the Flat Rate Scheme (FRS). If you register for FRS, the amount of tax you must charge on sales is dependent on the nature of your business. You can find out more about the Flat Rate Scheme on our factsheet.
Keeping on top of VAT can lead to better cashflow and, if it turns out you’ve overpaid, a rebate – which is always nice. We’ll make sure you pay the right amount of tax for the size and nature of your business. We also recommend using cloud-based accounting software to manage your business finances. We can offer clients a choice of cloud accounting packages which include features to help calculate your VAT and keep on top of cashflow.
The rules for VAT can be complex. If you believe your product should be zero-rated, need to dispute an assessment or challenge a ruling, you can count on our support to get the right outcome.
+ more expertise
We can advise on these areas (and more):
- customs duties
- warehouse regimes to defer customs duties and VAT on imports
- disputes and appeals
- disputed assessments, settlement negotiation and tribunal representation
- partial exemption
- maximising VAT recovery, whilst limiting your costs
- planning and structuring transactions
- structuring transactions to avoid unnecessary VAT and dealing with central or local authorities
- international issues
- rationalising registrations worldwide and securing repayments from outside the UK
- managing the cashflow implications of VAT
- specialist sector rules including: catering, not for profit, care homes, hotels, student unions and sports clubs.