VAT

KAG vat services 

VAT can be challenging to manage. VAT errors can prove costly while VAT investigations are time-consuming and stressful.  KAG’s flexible VAT services take the hassle out of VAT, reducing the VAT management overhead and the risk of errors. We undertake VAT Return compilation and submissions and offer VAT compliance Audits to identify and mitigate any issues. Our VAT planning, VAT registration and deregistration services ensure your business optimises the available reliefs and uses the right VAT schemes.

From VAT compliance to HMRC VAT dispute resolution, KAG can help. Our specialist VAT team will help you cut through the jargon and solve your VAT problems.

VAT SERVICES

VAT Returns

We aim to make your VAT returns simple and hassle-free. Your dedicated KAG account manager will digitise, prepare, review and submit of simple or complex VAT returns under a range of schemes and with varying frequencies.

MTD COMPLIANT VAT systems

HMRC’s Making Tax Digital requires companies over the VAT threshold to keep digital records that can be exported into a digital VAT submissions. From 1st April 2021, this is extended to all VAT registered companies irrespective of turnover.

KAG work with a variety of VAT record formats and offer turnkey digital migration to a leading HMRC-compliant, cloud-based accountancy platform, Xero that calculates VAT, prepares and files returns securely with HMRC system compatible software. READ MORE

HMRC Inpection & Dispute resolution

VAT inspections can be protracted, disruptive and stressful. VAT rules are inherently complex and businesses can incur unexpected VAT liabilities or penalties.

In the event of a dispute or inspection by HMRC, the right advice can be crucial and have significant financial implications for your business.  Speak to our experienced in VAT dispute resolution team and find out how we can help.  

VAT Health Check

Prevention is always better than cure.  Our VAT health check audit is designed to identify any potential issues and solutions before they get picked up by HMRC.

VAT Planning & Structuring

KAG’s VAT planning services are designed to ensure your business gets all the available reliefs and uses the right VAT treatments depending on transaction complexity, contract and business structures to maximise VAT recovery.

VAT Registration & Deregistration

VAT registration can deliver benefits for some businesses with turnover below the VAT registration threshold.  For other business models, the administrative cost can outweigh the advantage. Our team can make sure you register where required and advise on the business case for deregistration where applicable.

Import & Export VAT

VAT accounting for imports/exports is changing for trade with both EU countries and the rest of the world.  Postponed VAT accounting, deferred customs declarations, reverse charging and VAT refund systems are all altering the VAT process, as are the new distance selling rules for exports to EU countries.  Our VAT Team is working closely with our customers to update systems and provide training on how to comply with the new system.

VAT = VALUE ADDED TAX Q&A

What is VAT?

VAT – or Value Added Tax – is a tax added to services or products at the point of sale.

VAT can be claimed back on purchases and goods used in the running of the business. The amount of VAT a business pays or claims back from HMRC is usually the difference between VAT charged on sales and VAT paid on their own purchases.

Who must register for VAT?

Businesses with a turnover of £85000 or more have to register for VAT, if they are selling a service or product which is subject to VAT. Some supplies are exempt, you can if you are exempt on HMRC website.

What is reported in a VAT Return?

A VAT return contains details of VAT received on sales less the VAT paid on purchases. The difference is then paid to HMRC or refunded to the business. Details of net sales figure and your net purchases figure are also included.

How often do I have to submit a VAT Return?

VAT returns are usually filed quarterly but can be filed annually or monthly. Different businesses can choose the frequency of filing to suit their business best. There are certain criteria which must be met in order to file in different filing timescales.

VAT returns have to be filed within 1 month and 7 days of the end of your VAT quarter i.e.a VAT quarter ending 31st March has to be filed and paid by the 7th May.

What must be included in a VAT Invoice?

Invoices that have VAT charged on them must include the following:

• Date of supply.
• A unique invoice number.
• VAT number of the seller.
• Full address of the supplier and customer.
• Full description and quantity of goods/services supplied.
• Date of supply if different to invoice date.
• Breakdown of nett prices of services/products
• Tax rate applies each supply and amount.
• Where supplies have been self-billed this must be referenced to
• Details to support zero-rated/reverse charged.
• Reference to any margin schemes that have been applied ie tour reference margin.
• The total, gross value of the supply.

What is the Flat Rate VAT scheme?

There are different VAT schemes which can be used to simplify the VAT.  The flat rate scheme is commonly used VAT scheme by many SMEs.

Under the flat rate scheme, the seller applies a flat rate to all his sales and does not have to keep a breakdown on the VAT on purchases.

Each sector has a different percentage value that they can be claimed against. You are not allowed to claim back VAT on purchases unless the item purchased is a capital asset greater than £2000.

In order to join this scheme, your turnover must be below £150,000.

VAT Health Check

 Furture proof you VAT reporting. Identify any potential issues and solutions before they get picked up by HMRC.Call us today 01786 542175 to speak to our business advisory team.

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KAG Accountancy Ltd
Office 6,
Kildean Business & Enterprise Hub,
146, Drip Road,
Stirling  FK8 1RW