This service is normally included as part of our comprehensive bookkeeping package for VAT registered clients but can be provided as a standalone option should it be required. Our customer-focused approach means that it’s our objective to offer clients what they actually need and not what we think we can sell them.

The world is changing and the introduction of Making Tax Digital compliance in April 2019 has resulted in a huge shake-up for the way VAT is managed by those registered businesses. There are new ways of filing the information to HMRC and a more stringent penalty regime to accompany the new regulations.

From 1st April 2019, the way VAT submissions are made now include the use of cloud software. Luckily for our clients we have grown Whyfield based on this way of working so the transfer to MTD has been unperturbed, but we recognise not everyone has had the same journey, so our cloud accounting experts are on hand to help you make this move.

Accurate VAT recording and submissions mean you will satisfy HMRC compliance and should you ever be selected for a VAT audit, having clear and well-produced information will eliminate any concerns and answer any questions. Of course, all our fees incurred from an investigation will be covered by our Tax Fee Protection Insurance.

FAQs

What is VAT and why is it important for businesses? 

Value Added Tax, otherwise known as VAT, is a tax that is charged on the majority of goods and services sold in the UK. Businesses have to register for VAT if their turnover is more than £85,000. They are responsible for collecting VAT on behalf of HMRC and submitting regular VAT returns. 

How do I know if my business needs to register for VAT?

If your business’ taxable turnover exceeds £85,000 (the VAT registration threshold in 2023/2024) in a 12 month period, you must register for VAT. However, you can also voluntarily register for VAT even if your turnover is below this threshold. 

What are the different VAT Schemes available for businesses?

UK VAT Schemes include the standard VAT scheme (VAT is recorded and paid on the basis of when invoices are issued), the flat rate scheme (a fixed rate of VAT where you keep the difference between what you charge your customers and pay to HMRC, but you cannot reclaim the VAT on your purchases), the annual accounting scheme (VAT payments are made in advance towards your VAT bill based on your last return, or estimated if you’re new to VAT), and the margin scheme(the tax paid is the difference between what you paid for an item and what you sold it for, rather than the full selling price, often used for second-hand good and works of art).

There is also an option to use a Cash accounting basis along with some of the schemes. To find out more about each scheme’s criteria and benefits, and to make sure you choose the right one for your business, you can click here or contact us to chat through your options.

How can Whyfield help me with my VAT compliance and planning?

Whyfield’s team of experienced accountants and tax advisors can help you with your VAT compliance and planning by providing an extensive range of VAT and business support services. These include VAT registration, VAT returns, VAT advice and planning. We will ensure that your business is compliant with VAT regulations and help you to minimize your VAT liabilities, whilst also being here for any questions you may have along the way – think of us as an extension of your finance department!

What are some common VAT mistakes that businesses should avoid? 

We often see common VAT mistakes that are easily avoidable, but we can help to ensure these don’t happen! Some of the common VAT mistakes that business make include; not registering for VAT on time, charging the wrong about of VAT, failing to keep adequate VAT records and receipts, not sending over requested information in a timely manner, and not submitting VAT returns on time. When working together with us we offer support and guidance, ensuring these common VAT mistakes are avoided.