If there is one aspect of being in business for yourself that seems to strike terror into the heart of the owners … then it has to be VAT. We have seen people even stifle their business potential by stopping trading for several weeks to avoid going over the compulsory registration limit. In certain circumstances this may well be justified … often it is misguided.
Why that should be, is something we can never understand. VAT accounting is easy. You just have to be organised and consistent in the approach you take to writing up your sales, purchases and bank accounting records.
MAAP offers a complete ‘cradle to grave’ VAT book-keeping service that will allay all your concerns.
If you are trading and not currently registered for VAT, your main concern will be to make sure you keep a careful track of your moving 12-month sales figure. If it goes over the compulsory registration limit, you must register for VAT and start charging it at the end of the following month.
The compulsory VAT registration limit tends to rise each April and the current turnover amount can be viewed on our tax card.
It is missing the compulsory registration date that causes most small businesses grief, especially if their turnover is seasonal and prone to wide variance that could potentially take them over the registration limit one month and they don't realise it until some time later when the time comes to prepare their annual accounts.
Most of our clients are paying between £85 and £110 a month for a full book-keeping and accounting service that will produce all the transactional records you will need to keep for the unlikely day you are chosen for a HMRC VAT compliance visit. The last client who suffered a VAT compliance visit was given a complete clean bill of health, which has to say something about our methods and VAT book-keeping standards.
One of the issues you will have to consider is choosing the correct VAT scheme for your circumstances. In recent years many small businesses sensibly opted for the Flat Rate scheme. From the April 2017, this option may not necessarily offer the best solution and it is important to look very carefully at the whole situation to avoid making a costly mistake.
The HMRC has publised new guidance on the Flat Rate scheme as follows:
- VAT Notice 733 Flat Rate Scheme for Small Businesses
- VAT Flat Rate Scheme Percentages
If you are worried about any aspect of how registering or deregistering for VAT may affect you and your business, then please give us a call on 01202 482121.
We will be pleased to help.
It is important to match your needs with an accounting firm that has experience of dealing professionally with your sector.
Match one of the client profiles below, and you will know we can deliver the service you need at the fee level stated.
Call 01202 482121 for a free consultation.
Sigma House, 44 Willow Way
Christchurch, Dorset, BH23 1LA
Tel: 01202 482121