VAT Accountants in London and Hertfordshire

VAT registrations and returns

We can ensure compliance with both of these processes,  we file all VAT registrations online because these tend to be processed more quickly by HMRC.  Once VAT registered, we can offer cloud accounting solutions as well as helping you to meet your filing deadlines and comply with Making Tax Digital obligations.

Partial exemption

Calculations for this are mandatory if conditions are met and it can often be a complex process.  Where a business has both taxable and exempt income, the ability to reclaim input tax on purchases will be determined by the partial exemption calculation.  We perform these calculations and ensure full compliance with legislation, while always aiming to maximise your VAT recovery wherever possible.

Capital Goods Scheme

These calculations are mandatory if conditions are met. When a capital item (property) with a value over £250,000 has reclaimed input tax, the Capital Goods Scheme requires monitoring for 10 years. It can be a complicated process, but we will perform calculations on your behalf, ensuring full compliance and working to maximise your VAT recovery wherever possible.

Property and VAT

One of the most complex aspects of VAT, property VAT usually involves large calculations taking into account a wide range of factors. The aspects that we can assist with include:

• Option to tax
• Capital Goods Scheme
• Domestic reverse charge for construction services
• Advisory on Reduced rates for conversion
• Advisory on zero rating for village halls, annexes and new dwellings
• Understanding the history of an existing property is as important as the future use of the property.

Post-Brexit trading

One of the biggest changes for businesses to have had to deal with in recent years, we can assist companies in the UK and the EU with VAT registration in the UK (or in the EU and rest of the world via our partners). We can both ensure compliance with, and offer guidance on, a range of areas including:

• Postponed Import VAT Accounting (PIVA)
• Duty Deferment Accounts (DDA)
• Customs warehousing
• Customs procedures
• Outward processing/inward relief

VAT enquiries with HMRC

HMRC continues to inquire into business records and VAT is no different.  After being contacted by HMRC, businesses will be required to send relevant records including copies of invoices, bank statements and annual accounts.

It is important to stay in control of the inspection. If you suspect there may be errors, Rayner Essex can review your data before it’s submitted. Sending the data to HMRC with full knowledge of the issues makes for an easier inspection process.

VAT – EU/RoW import and export

Since Brexit, the world of importing and exporting has become infinitely more relevant to UK businesses.  We can help you to understand how your business processes need to work in order to negate the impact of Brexit on you and your customers. We cover various aspects of import and export including:

• Structure such as triangulation (NI only), drop-shipping and direct selling models
• Commodity codes/Binding Tariff information submissions
• Rules of Origin

VAT groups

For companies with common ownership and control, there may be scope to form a VAT group. Transactions between companies within a VAT group will not need to charge VAT to each other – improving cash flow and simplifying intercompany accounting.  

VAT groups can also be helpful with corporate groups who are partially exempt. It’s important to note that all members of the VAT group are jointly liable for VAT, so if one company is unable to pay their VAT liability, HMRC will seek payment from the VAT group as a whole.

Specialist schemes

There are many schemes offered by HMRC within the legislation, each having their own particular purpose and benefits/downsides.  For example

• Flat Rate Scheme (including farming scheme)
• Annual Accounting
• Payments on Account
• Partial Exemption
• Capital Goods Scheme
• Reverse Charge (both domestic and non-domestic)

VAT consultancy

Corporate restructures, management buyouts, acquiring a competitor business, due diligence or Transfers of Going Concerns (ToGC), there are many aspects to VAT, many of which are not always considered until after the transaction has happened and by  then it could be too late.

As VAT is a transactional tax, it is best to consider the VAT implications before proceeding with a transaction, whether it is buying or selling a business or a property.  Intention/future plans are as important to the decision making process as VAT may be reclaimed on the basis of an intention today, that changes tomorrow.