There are several parts of VAT management for small businesses that are managed by their accountants. We describe these below.
Registering at the Right Time
Once your business is approaching the VAT threshold for its taxable turnover, your Gloucester accountant will notify HMRC of your mandatory registration at the appropriate time to ensure you don’t get caught out with a backdated VAT charge.
Picking the Right VAT Scheme
Whilst the standard VAT scheme is suitable for many small businesses, others can benefit from registration under an alternative VAT scheme. This could include the flat rate scheme, cash accounting scheme or other VAT schemes, depending on the business’ specific circumstances and needs.
Submitting Returns Under Making Tax Digital
VAT returns are now submitted online using MTD compatible software, this would be set up by your accountant, and your accounts updated and submitted on your behalf as and when required.
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Reconciling VAT with Your Bookkeeping
Before you submit your online VAT return, your accountant will make sure the VAT figures agree with your Bookkeeping records and can be supported by the relevant bank statements and sales invoices.
Recovering VAT on Purchases
Most small businesses forget that there is VAT to reclaim on items such as capital equipment, professional fees, and stock purchased for resale. The rules for VAT reclaim are well understood by accountants and all claims will be ensured to be valid in accordance with the relevant legislation.
Handling HMRC Queries
A Gloucester accountant will also deal with HMRC correspondence including queries over VAT Returns and penalties incurred. The necessary paperwork will be prepared and submitted on your behalf for all of the above services.
Managing your VAT is much easier with the right support in place.