Common VAT problems
Once you understand the basics, VAT is reasonably straightforward. But there are some areas where it is easy to make mistakes. These can lead to stringent penalties, and ignorance is no defence. In...
View ArticleA guide to The Annual Accounting Scheme
UNDERSTANDING THE ANNUAL ACCOUNTING SCHEME As an overview, the Annual Accounting Scheme allows you to complete just one VAT return per year. The VAT is paid in instalments, thus avoiding a VAT...
View ArticleVAT on Incorporation
If the previous business was VAT registered it can pass its VAT number on to the new company under the transfer of going concern rules (TOGC). However, this is not always advisable as the VAT number...
View ArticleA guide to The Flat Rate Scheme
UNDERSTANDING THE FLAT RATE SCHEME As an overview, the Flat Rate Scheme allows you to apply a single percentage to your turnover to work out your VAT liability. This is one amongst a number of schemes...
View ArticleA guide to VAT Registration
LEGAL The requirement for a taxable person/business to register for VAT in the UK is included in the Value Added Tax Act 1994 (VATA 94). The administration of VAT and registration is performed by HM...
View ArticleVAT Registration Advice
It’s one number (£77,000 from 1 April 2012), so why is so easy to get it wrong? We are talking about the compulsory VAT registration threshold in the UK. If your VAT taxable turnover (sales) total for...
View ArticleVAT Mistakes
If your company makes a deliberate VAT mistake, which results in less VAT being paid over to HMRC than is correctly due, you as the director of that company can be issued personally with a penalty....
View ArticleVAT on Storage Change
The law on whether VAT must be charged on storage facilities changed from 1 October 2012. Before that date if you let out space for storage to individuals or businesses, that service could be exempt...
View ArticleQuestion and Answer – VAT Reclaims
Q. I need to get a high-end computer for my business which will cost about £2,200, but I use the VAT flat rate scheme for small businesses which doesn’t allow VAT reclaims. I’ve heard that I can claim...
View ArticleVAT on Sale of Commercial Buildings
When purchasing or selling a commercial property one of the first things to establish is whether VAT will be applied to the price of the property. Land and buildings are generally exempt from VAT, but...
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