VAT Services

VAT stands for Value Added Tax, which is a tax that businesses must charge on most goods and services they sell in the UK. VAT is also charged on some goods and services that are imported from outside the UK. The standard rate of VAT is 20%, but some items are charged at a reduced rate of 5% or a zero rate. Some items are exempt from VAT or outside the scope of VAT.

Businesses that have a turnover of more than £90,000 in a 12-month period must register for VAT with HMRC and charge VAT on their sales. They must also pay VAT on their purchases and expenses. Businesses that have a turnover below this threshold can choose to register for VAT voluntarily if they wish to do so.

Businesses that are registered for VAT must keep accurate and complete records of their sales and purchases, and submit VAT returns to HMRC every month, quarter, or year, depending on their chosen accounting scheme. They must also pay any VAT due to HMRC by the deadline, or claim any VAT refund if they have paid more VAT than they have charged.

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How we can help take the stress away from VAT

Preparing and submitting your company’s VAT returns to HMRC on time and accurately, and pay or reclaim any VAT due.
Assisting your company in deciding whether to register for VAT voluntarily or not, and which VAT scheme to use.
Recording the company’s sales and purchases, ensuring that the correct VAT rate is applied to each transaction.
Assisting with VAT on imports and exports, especially after Brexit.
Ensuring your company is in compliance with “Making Tax Digital”, which requires digital records and online filing of VAT returns.
Handling any communication or correspondence with HMRC regarding VAT matters, and resolving any queries or issues that may arise.
Providing expert guidance and support on various VAT topics, such as exemptions, reliefs, invoices, records, and more
Assist in the company finance plan and budget for its VAT costs, and optimise its cash flow and profitability.

"One of the main changes to VAT obligations post-Brexit is that imports of goods from the EU are now treated the same as imports from non-EU countries. This means that businesses have to pay import VAT and customs duties on goods they bring into the UK from the EU, unless they use postponed accounting or other reliefs. Postponed accounting allows businesses to account for import VAT on their VAT returns, rather than paying it at the border. Customs duties can be deferred by using a duty deferment account.

Another change is that VAT on goods sold to UK consumers from overseas is now collected at the point of sale, rather than at the point of importation. This applies to goods with a value of up to £135. Online marketplaces that facilitate such sales are responsible for collecting and accounting for the VAT. Overseas sellers that sell directly to UK consumers also have to register and account for VAT to HMRC.

Although the rules for supplying services from the UK to the EU have not changed significantly, it's still very important that UK businesses understand their responsibilities and obligations in relations to VAT.

— Yvonne O’Connor, Company Director, O’Connor & Co