VAT Returns

Cash Accounting Scheme: The Cash Accounting Scheme is a method of accounting for Value Added Tax (VAT) on the basis of payments made and received rather than invoices issued and received. We can assist businesses with the registration with the scheme if eligible, we can also assist with recording transactions, VAT return preparations, compliance reporting and support. To join the scheme your VAT taxable turnover must be £1.35 million or less. VAT taxable turnover is the total of everything sold that is not VAT exempt. To use the cash accounting scheme your business has to be registered for VAT. You must leave the scheme if your VAT taxable turnover is more than £1.6 million. You should leave at the end of a VAT accounting period.

Standard Rate: The standard rate in the UK is set at 20%. We can assist in helping your business comply with VAT regulations, preparing VAT returns and advising on VAT implications for transactions. Most good and services are charged 20%, others are VAT exempt and such follows.

Flat rate scheme: Under this scheme, businesses have to pay a fixed percentage of their gross turnover to HMRC as VAT rather than calculating VAT on each transaction. Businesses with an annual turnover of less than 150,000 GBP or less (excluding VAT) can join this scheme. The rate ranges from 4%-16.5% depending on the sector of business. We can assist in submitting VAT returns to HMRC. With flat rate scheme you cannot reclaim the VAT on your purchases. You must leave the flat rate scheme if on the anniversary of joining, your turnover in the last 12 months was more than £230,000 (including VAT) - or you expect it to be in the next 12 months. The VAT flat rate you use usually depends on your business type. You may pay a different rate if you only spend a small amount on goods. You get a 1% discount if you are in your first year as a VAT-registered business.