VAT Advice
VAT is supposed to be the simplest tax of all. "It's just a matter of subtraction after all." The truth is far from that.
Know your VAT facts. The standard rate rose to 20% from 4 January 2011. Care needs to be taken with the other VAT schemes such as the Flat rate. New Flat rate percentages apply from 4 January 2011, depending on your business type. Talk to us about the Place of Supply rules affecting overseas clients and those who deal with European clients effective from 1 January this year.
VAT Checklist
- Businesses should use the new fraction of 1/6 to calculate VAT from 4 Jan 2011
- Seek advice from your accountant on certain exceptions when you can still use 17.5% rate
- Those on the cash accounting scheme should take care to identify supplies at the correct rate
- Talk to us if you expect your VAT liability to change significantly before end of your accounting period
- Apply new Flat rate revisions from 4 Jan 2011
- Seek advice on how to recalculate VAT on Fuel scale charges
VAT has become one of the most complex areas of tax where the structure of a deal can cost thousands of pounds. And once the deal is done it cannot be fixed. It is vital that you seek professional advice on any deal before it happens.
We can make sure that you take the most VAT efficient route in structuring any transaction, from buying, renting, or building a property to the purchase of a business. And we can liaise with your lawyer or solicitor to ensure that any agreements drawn up take advantage of any VAT planning schemes available.
And it's not just the big deals where VAT can be saved. Every day businesses pay too much VAT to HMRC because they are not aware of the issues relating to aspects of their business. We can advise on these areas and negotiate with HMRC to minimise your VAT liability.
For the small business owner there are alternative VAT schemes such as the Flat rate, Cash and Annual accounting. These schemes are designed to help reduce administration and the costs of paying VAT. With our knowledge and specialist experience we can help you choose the scheme that is right for your size of business.
We also have clients who are based in the UK, but provide services abroad. These working practices may merit advice on VAT (both UK and overseas regulations), as well as PAYE considerations.
Overseas clients and those with European clients need be aware of further VAT simplifications to the place of supply service rules introduced 1 January 2010. There are new place of supply service rules from 1 January 2011 with the sting in the tail being the potential completion of EU Sales lists. There is a de minimus limit but only for quarterly submission - the annual submission must go in regardless. Penalties can be charged on missing / erroneous returns.
Whatever your requirements we would be happy to meet you.
See related services:
Read the 2011 Spring Budget
