VAT Accountants London, Hounslow & Kingston
We are Specialist Online Accountants, providing full comprehensive accounting support to ensure that you pay the correct amount of VAT in compliance with HMRC’s Real Time Reporting requirements and ensure that you never miss a deadline.
Full VAT assistance
All VAT registered businesses must keep concise records of sales and purchases, issue correct VAT invoices and keep a VAT Account. Our team of professional accountants will set up the systems that need to be in place to maintain all of these. Hence, reporting and paying VAT every 3 months will be easily and simply done.
Choosing the Right VAT Scheme
The correct choice of VAT scheme can make a huge difference to your business. The following factors need to be considered when making this choice – products/services supplied, business structure and revenue. As experienced chartered Accountants for contractors, freelancers and businesses we provide you with full VAT support.
Flat Rate VAT Scheme
The flat rate VAT scheme is preferable for small businesses as it minimizes time spent on accounting for VAT. This means that you do not have to calculate VAT on each and every invoice but simply pay a flat rate percentage of your turnover as VAT. This flat rate percentage is less than the standard rate of VAT as VAT is not claimed on purchases. There is range of flat rate percentages depending on your business sector. Please note that this VAT scheme is not appropriate for businesses that buy many goods/services from VAT registered businesses or that make many zero- rated or exempt sales as you will end up paying more VAT than you should.
Standard VAT accounting
Standard VAT accounting allows you to reclaim VAT for purchases made. Hence, you reclaim the net of the VAT from customer invoices and that paid on purchases. Accrual basis of accounting is used to calculate VAT in this scheme. That means that VAT is calculated on raised invoices rather than on the date the invoice was paid. Note that a negative cash flow effect could result with this system if you pay VAT to HMRC for goods/services sold you have not received the money for yet. However, by claiming VAT on purchases made but not yet paid for could have a positive impact on you cash flow.
Cash VAT Accounting
Cash accounting is favorable for your cash flow especially if your customers are slow to pay or you have bad debts. This VAT scheme allows you to calculate VAT on actual money paid or received rather than on an invoice basis. Using the cash accounting scheme is beneficial as you do not pay VAT if your customer never pays you. Note that every invoice needs to be stamped with amount of cash paid and the date.