Yes we know you know what its is, but just in case this is all new to you. Value Added Tax (VAT) is a tax that’s charged on most goods and services that VAT-registered businesses provide in the UK. It’s also charged on goods and some services that are imported from countries outside the European Union (EU), and brought into the UK from other EU countries.
VAT is charged when a VAT-registered business sells to either another business or to a non-business customer.
When VAT-registered businesses buy goods or services they can generally reclaim the VAT they’ve paid.
If you’re a VAT-registered business, in most cases you:
- charge VAT on the goods and services you provide
- reclaim the VAT you pay when you buy goods and services for your business
If you’re not VAT-registered then you can’t reclaim the VAT you pay when you purchase goods and services.
Books and Numbers will collate your VAT records and calculate the amount of VAT to pay or possibly receive as a refund from HMRC. We will lodge your return electronically for you and notify you of the amount to pay. You can pay this by Direct Debit, via bank transfer or if necessary by credit/debit card via the HMRC website.
The principle of VAT is simple, understanding the rules and getting it right is much more difficult and even many experiences business people make mistakes.
Using the software we recommend for your book-keeping gives you the peace of mind to calculate the figures for your VAT return quite easily, providing that the information has been entered correctly.
If Books and Numbers are doing your book keeping, then you can rest assured that the VAT figures will be correct, lodged with HMRC on time giving you time to arrange funds to pay.
As your agent we can talk to HMRC on your behalf if there are any issues or you wish to negotiate a payment arrangement.