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VAT (Value Added Tax)
Kms Accountancy can
assist you with VAT registration and
VAT deregistration. We can
complete your VAT returns as part of our bookkeeping
services or we can simply check your figures each quarter.
VAT - So what's it all about?
VAT! The dreaded tax that
everyone seems to hate and tries to avoid like the plague.
VAT is the tax that applies
to most business transactions that involve a supply of goods
or a service.
You must register your
business for VAT once the level of turnover reaches a
certain amount. Currently £67,000. So once your turnover
exceeds £67,000 in any rolling 12 month period you must
complete a VAT1 form (this is the VAT registration form).
Even if your turnover is
below these levels you may consider a voluntary
registration.
So how does the VAT system work?
Once you have registered you
will be given a VAT number. In simple terms the VAT
you charge on your sales (output VAT) is paid to HMRC and
the VAT you pay on goods and services (input VAT) is
reclaimed from HMRC. This is all summarised on a quarterly
VAT return - there are monthly and annual returns too.
The VAT return itself will be
due one month after the return period it relates to. So, for
example, the return covering the three month
period June, July and
August will be due at the end of September. The payment will
also be due at this time. HMRC accept all methods of payment
and even grant you an additional 7 days grace for online
payments - although the payment has to have cleared - so in
theory this is only the equivalent of an additional 3 days.
Whatever the problem or
requirement Kms Accountancy can assist with your VAT. Please
contact us
for more details.
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