VAT accounting services
VAT is simple enough in theory, but it can easily become complicated depending on what your business does. It’s also changing all the time, at a much faster rate than corporate taxes, so it’s worth having a VAT expert at hand who can guide you through any changes you need to be aware of, keep up to date on things that could affect the way you do business and ensure every box is always ticked. Brexit in particular is a game-changer which affects every business to some extent, and at Rayner Essex we can help to guide you through the coming months.
VAT errors are often difficult to fix retrospectively, so it’s crucial to have a reliable accounting expert at hand to ensure that everything is correct. Not only is it helpful to be able to rely on these services at any time but it’s good practice to undertake a full review of your VAT situation every 2-3 years to ensure you and your business are fully complying with the rules.
At Rayner Essex the full suite of VAT services that we provide ensures that everything is covered.
What VAT accounting services does Rayner Essex provide?
VAT registrations and returns
We can ensure compliance with both of these processes, ensuring that we file all VAT registrations online because these tend to be processed more quickly by HMRC than paper registrations. Following this, we can offer cloud accounting solutions as well as helping you to meet your filing obligations and comply with MTD.
Calculations for this are mandatory if conditions are met and it can often be a complex process. We perform these calculations and ensure full compliance with legislations, while always aiming to maximise your VAT recovery.
Capital Goods Scheme
These calculations are also mandatory if conditions are met. 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
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
- Duty deferment accounts
- Customs warehousing
- Customs procedures
- Outward processing/inward relief
Import and export
Since Brexit, the world of importing and exporting has become infinitely more complicated. We can help you to understand how your business needs to work and how to negate the impact of Brexit on you and your customers. We cover various aspects of import and export including:
- Structure such as triangulation, drop-shipping and direct selling models
- Commodity Code/Binding Tariff information submissions
- Rules of Origin
What are the unique benefits of working with Rayner Essex for VAT services?
It’s our goal to fully understand your business – both its current goals and its ambitions for the future. We take the time to gain a complete picture of who you are in order to provide bespoke advice and solutions that meet the unique needs of your business and can closely align with its existing aims.
With over 25 years’ experience of working with SMEs and large corporates alike, we are constantly adding to our portfolio and every client we work with gives us additional knowledge. This means we are as up-to-date with online companies as we are with bricks-and-mortar businesses, across a wide range of industries.
When do I need to register for VAT?
VAT calculations need to be performed at the end of each month, and when the end of the financial year comes we look back across the previous 12 months. We include any sales which would be subject to VAT if you were VAT registered. We exclude sales which are exempt and outside of the scope of VAT, and include sales which would be at 20%, 5% or 0%. If the total calculation exceeds £85,000 then you are required to register for VAT.
Am I partially exempt from VAT if I make sales which are both taxable and VATable?
You are partially exempt if you have both taxable and exempt income. This means that input tax (that VAT on purchases) is only recoverable if it relates to the taxable activities of your business. A series of tests form the partial exemption calculation, and the experts at Rayner Essex can guide you through this process.
Why are tax points so important?
Tax points determine when VAT needs to be declared to HMRC, so it is important to get these right. A business, for example, may take a deposit for a future event, and the basic tax point is the date the money is received rather than the date of the event. The actual tax point may also be the date on which an invoice is issued, where issued within 14 days of the basic tax point.
I didn’t file and pay my VAT return in time. What should I do?
For a first tax offence, there is no penalty. However, interest will be charged daily until VAT is paid. For second offences, the penalty is 2% of the unpaid VAT. For a third it is 5%, then 10%, 15% and so on, increasing incrementally with each late payment. This total can be reset to nil with a 12-month period of correctly filing and paying VAT on time.