Additonal Information
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      1. Nasa Consulting Accountancy Services
      2. LTD Company and SME Accountancy
      3. Additonal Information

      VAT Registration

      VAT registration may be optional or compulsory, it all depends on your company turnover.

      VAT-1

       

      VAT is a tax that is added to most goods and services sold or provided by VAT registered businesses.

      Businesses must register for VAT either when they expect their turnover to exceed £85,000 or if the VAT taxable turnover for the past 12 months was over £85,000.

      A company can choose to voluntarily register for VAT at any point, however, upon reaching these thresholds, VAT registration becomes mandatory.

      Most companies will be required to charge VAT at the standard rate and will generally pass this onto HMRC.

      Selecting the most suitable VAT scheme for a business is important, as it affects how the business manages its VAT obligations.

      Selecting the most suitable VAT scheme for a business is important, as it affects how the business manages its VAT obligations.

       

                                Flat Rate VAT                           

                             Standard Rate VAT 
      VAT is charged at 20% but only a flat rate percentage is passed on to HMRC. Typically this is 15.5% in the first year, increasing to 16.5% in subsequent years The standard rate scheme requires the company to charge VAT at the standard rate of 20% and pass on the full 20% charged to HMRC 
      Business expenses are processed for tax relief only, VAT cannot be reclaimed Any VAT that has been incurred on allowable business expenses can be reclaimed, no tax relief on expenses

       

      The difference between the VAT charged and VAT incurred is the VAT payable to HMRC.

      There are benefits and downsides to each scheme and there is not a one size fits all approach, it is dependent on the activity of the company. Your dedicated accountant will be able to discuss which is most appropriate for your business.

       

      Get in touch to find out more:

      📞 01179 297 683 - Option 1

      📧 sales@nasaconsulting.com

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