You must register for VAT when your turnover for the previous 12 months has gone over a specific limit - called the 'VAT threshold'.
This is currently, fixed at £77,000, for the period of 2012/2013.
You must register for VAT if your revenue has reached this threshold or if you believe your turnover will soon go over this limit.
Turnover or revenue is sometimes confused by many but this is the income amounts that a business takes in sales or revenue before any expenditure.
Once you have registered, VAT must usually be charged on all sales or revenue at 20%.
Your invoices must include your VAT Registration Number and you must start to submit VAT returns to HMRC quarterly.
VAT - Value Added Tax
Why it is Important?
VAT balances out between Input and Output Tax and must be accurately accounted for.
Depending on the differences between Input and Output will determine whether a payment amount to or from HMRC is made.
Late filing and inaccurate filing can lead to paying costly fines.
By employing the services of JB’s Book-Keeping Services can give you peace of mind and you can rest assure that VAT is being accounted and calculated correctly and on time.
What We Do
We keep records of your income and expenditure throughout the year accounting for Input and Output VAT and submit returns quarterly or as and when necessary.
How we Work
We will collect and return your documents from you or call at your premises. We will update all necessary records and issue you with a summary.
We will then use this information to submit your VAT Returns to HMRC.
JB's Book-Keeping Services
