VAT & Tax Compliance

VAT Returns and Compliance:

If your business sells supplies of taxable goods and/or services, as soon as your turnover (sales) reaches the statutory registration threshold, it is a legal requirement that you should register for VAT.

We can help you comply with all the VAT regulations by assisting you in a number of ways including the following:

  • Deciding whether your business needs to be vat registered.
  • Advising as to whether any of the available schemes may be appropriate for you.
  • Providing assistance with the completion of VAT returns.
  • Negotiating with HMRC if disagreements arise and in reaching settlement.

You can voluntarily register for VAT if your taxable supplies are below the registration limit. This may be useful for businesses that:

  • Make mainly zero rate supplies (supermarket, pharmacy) and therefore would get refunds of VAT.
  • Persons who make taxable supplies to businesses that are all vat registered.
  • If you have not started trading yet, but intend to do so. In this way input tax on start up expenses can be recovered.

If your business is making only exempt supplies (dental practice, care services) you cannot register for VAT and cannot therefore recover any input tax. If any individual carries on two or more businesses all the supplies made in those businesses will be added together in determining whether or not the individual is required to register for VAT.

Once registered you must make a quarterly return to HMRC. This must be completed within one month of the end of the period it covers (except for those on the annual accounting scheme who have two months).

It is important that a VAT registered business maintains complete and up to date records. This includes details of all supplies, purchases and expenses. In addition a VAT account should be maintained. This is a summary of output tax payable and input tax recoverable by the business. These records should be kept for six years.

HMRC have wide powers to penalise businesses who ignore or incorrectly apply the VAT regulations. Penalties can be levied in respect of the following:

  • Late returns
  • Payments late
  • Registration errors in returns

Tax Returns and Compliance:

Completing a tax return can be stressful experience, even if there are only a few entries to make. There are various filing deadlines to meet, depending on personal circumstances and as those deadlines approach, the task can seem more and more daunting.

There are two main types of tax return. If the Revenue thinks that you have simple tax affairs, they will issue a ‘short return’, which must be submitted by the 31st October 2010, as it is only available in paper format. Only certain taxpayers are eligible to submit a short return and the Revenue expect the taxpayer to know whether or not they are eligible.

If your affairs are more complicated, or if you are a director of a limited company, you need to complete and file a full tax return. The form is more complex with a number of different supplementary sections that may need to be completed, depending on your circumstances.

Brian Foster Accountants Tax Returns Services Typically Include:

  • Completion of Tax Returns.
  • Calculation of the Final Tax Liability.
  • Online Tax Return Filing.
  • Liaise with clients on the amounts to be paid and when they are due.

In addition to this we can analyse your self assessment tax return to see if any tax savings can be made and we can also review the form to see if there are any anomalies that need to be addressed before the latest tax calculation is submitted. This process helps to minimise your risk of a Revenue enquiry into your tax affairs.

By giving you a fixed, competitive price and providing that you supply the relevant information within a reasonable time scale, we can take the worry away when it comes to self assessment tax returns, allowing you to concentrate on running your business.

For more information call TODAY on: 01922 457201 or 07831 774655.