If you own a VAT-registered company, then you must adhere to the many rules and regulations set out by HMRC. Ensuring compliance and meeting strict VAT deadlines isn’t always easy.
At Butt Miller, we help clients manage the intricacies of VAT accounting. Our VAT specialists are here to make running and scaling your business more manageable, helping you see the bigger financial picture.
So, whether you’re looking for better management of VAT accounts, support with VAT registration or assistance with compliance, our VAT services can make a huge difference. Contact Butt Miller today, and let’s discuss your financial needs!
What is VAT?
Value Added Tax (VAT) is an indirect tax added to most goods, services and other taxable supplies sold by VAT-registered businesses.
Being VAT-registered usually requires a business to submit a VAT return every 3 months, otherwise known as a quarter or your accounting period. To ensure you meet these quarterly deadlines and to help relieve the burden of VAT accounting, hiring a professional can help massively.
Why should you use a VAT accountant?
As a limited company or sole trader looking to save time and stress with a more streamlined VAT process, you’ll benefit from the help of a specialist VAT accountant at Butt Miller. We have a wealth of knowledge and experience in all areas of VAT accounting, helping to take the load off your shoulders when it comes to your VAT liability.
Our professional VAT accountants are there to support you through the VAT registration process and ensure that your company is reporting VAT correctly and making VAT payments on time. We can also provide advice on the best VAT scheme to apply for.
With the UK Government’s constant strive towards digitalised tax services, in the past couple of years, we have seen an increase in the number of companies looking for VAT accountants to guide them through the Making Tax Digital process (MTD).
The VAT team at Butt Miller can provide you with the knowledge and tools required to simplify MTD, from implementing MTD-compliant accounting software to helping you submit VAT returns online.
What businesses are VAT exempt?
Did you know that your business or part of its services might be exempt from VAT?
Examples of exempt income can include:
- Education and training
- Some medical treatments
- Some financial services and insurance
- Charity fundraising events
- Lottery winnings – should you be lucky enough!
If your business only sells or supplies goods and services that are exempt from VAT, as mentioned above, then the business as a whole can be considered exempt.
Since VAT-exempt income is not taxable, it won’t be included in the taxable turnover for VAT purposes. Similarly, if you buy exempt items, you cannot claim VAT.
At Butt Miller, we will help you navigate the complexities of VAT exemption, ensuring you submit your VAT returns accurately to make the most effective tax savings.
We are all-round accounting experts, so whether you have strict VAT responsibilities or are exempt from paying Value Added Tax, we can help you in more ways than one.
When should I register for VAT?
HMRC requires you to register for VAT within 30 days of the end of the month in which your taxable turnover exceeds £85,000 in a “rolling” 12-month period.
A ‘rolling’ 12-month VAT period means that you complete a whole year of business. After your first year in business, at the end of each month, you will take your latest month and add it to the total figure. You will then remove the oldest month. Your registration date will be the 1st of the second month after you exceed the threshold.
If your taxable turnover exceeded the threshold on 9 March 2023, you must register on 30 April 2023, with your effective registration date being 1 May 2023.
You must also register if you realise that your annual taxable turnover will go over the threshold in the next 30 days. You must make an application by the end of those 30 days, with the effective date of registration being the day that you realised (not the day your turnover went over the threshold).
On 1 March 2023, you arranged a contract for £100,000 to provide services, which you will be paid for at the end of March. You must apply by 30 March 2023, with the effective day of registration being 1 March 2023.
What is the deadline for paying VAT?
The deadline for VAT payments is one calendar month and 7 days after the end of the 3 month accounting period. You will also need to submit your VAT return by this date to comply with HMRC.
Working with our specialist VAT accountants will ensure your payment deadlines are always met. We’ll take over your accounts and implement software like Xero accounting to ensure all information can be directly submitted to HMRC.
Why choose Butt Miller?
At Butt Miller, we help clients across the whole spectrum, whether you’re looking for VAT accounting or a fully outsourced finance department. Our accounting services leave you to focus on the business whilst we navigate the minefield of dealing with HMRC and submitting VAT returns.
With our innovative approach, we will constantly strive to find the most efficient way for your company to manage its VAT liability. We will take the weight off your shoulders, utilising all the tools available, including professional cloud accounting software and finding the most suitable VAT schemes for your needs.
Contact us today to discuss how our VAT accountants can help you.
Frequently asked questions about VAT
For more information about Value Added Tax, please take a look at some of our most frequently asked questions below.
What is a service for VAT purposes?
A VAT service is any action or help offered to an individual or company in exchange for a fee. Common, everyday examples of services that are subject to VAT include caterers, plumbers, accountants, solicitors and consultants.
Is registering for VAT based on turnover or profit?
Registering for VAT is based on turnover, with the current threshold for mandatory registration being £85,000.
This means that your company must register for VAT if its taxable sales are more than £85,000 in a 12-month period. However, you can also voluntarily apply if your sales are below this level.
To avoid heavy fines and penalties, it is essential to register for VAT as soon as your company reaches the threshold.
Can I deregister for VAT?
If you are no longer eligible to be VAT registered (i.e. you stop trading or supplying vatable goods), then HMRC requires you to cancel your registration.
To avoid HMRC penalties, you will need to cancel within 30 days. You can also cancel your registration if your vatable turnover falls below the deregistration threshold of £83,000.