Bowyer Pounds & Co
76 Glebe Lane
Barming
Maidstone
Kent  ME16 9BD
Tel 01622 728 603
Fax 01622 728 604
Copyright 2010 Bowyer Pounds & Co Ltd.  All rights reserved.
Registered in England and Wales No. 4134290
Vat Registration No. GB 770 0663 41

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VAT

VAT

VAT is a tax. It is a tax that is added to the cost of your sale. When you make a sale for say £1,000, you charge your customer £1,200. The additional £200 is not your money, it belongs to HM Revenue & Customs. At the end of each period, which is usually a quarter you have to hand over the VAT you have collected. If during that period you have incurred business expenses which themselves carry VAT you can reduce the amount you pay to HMRC by the VAT which you have paid out to your suppliers

 

Should I be VAT registered?

A business that has a turnover in any 12 month period in excess of £73,000 - always measured to the last day in a month -  must register for VAT. Sometimes a business does not have to register but it is worthwhile registering voluntarily.  

 

Is that all there is to it?

The above paragraphs are only an outline of the current VAT system. There is of course a lot more to it than that. We have not mentioned that some sales are exempt, that there are three different rates of VAT, nor have we mentioned that there are a number of different VAT schemes a business can join. Some of these can save you money and are worthwhile joining, others are not.

 

We can advise on all aspects of VAT including; VAT registration, operating VAT and the different schemes available including  cash accounting, date of supply, flat rate scheme, retailers schemes etc. When the time is right we can also advise about VAT de-registration.