VAT is a tax that's charged on most goods and services that VAT-registered businesses provide in the UK. It's also charged on goods and some services that are imported from countries outside the European Union (EU), and brought into the UK from other EU countries.

VAT is charged when a VAT-registered business sells to either another business or to a non-business customer.

When VAT-registered businesses buy goods or services they can generally reclaim the VAT they've paid.

There are three rates of VAT, depending on the goods or services the business provides. The rates are:

• standard - 20 per cent
• reduced - 5 per cent
• zero - 0 per cent

There are also some goods and services that are:

• exempt from VAT
• outside the UK VAT system altogether

If you're a business and the goods or services you provide count as what's known as 'taxable supplies' you'll have to register for VAT if either:

• your turnover for the previous 12 months has gone over a specific limit - called the 'VAT threshold' (currently £85,000)
• you think your turnover will soon go over this limit

You can choose to register for VAT if you want, even if you don't have to, unless the services you provide or goods you sell are exempt from VAT.

IMPORTANT NOTICE!

From 1^st of April 2019 VAT-registered businesses with a turnover which is above the VAT threshold must register for Making Tax Digital service. They have to keep digital records and submit their VAT Returns via a compatible software.

We can assist your business by:

• Applying for VAT registration if required
• Advising the best VAT scheme to adopt (cash, accruals or flat rate)
• Preparing and lodging your VAT returns.

Contact us now on 07789758177 / 02082211165 for further information and advice regarding registration for VAT.