Value Added Tax

We can do your company’s VAT returns as well as your accounts. If we do both, then we will give you a 25% discount on the fee for the accounts to reflect the savings in time which we make. The VAT Report which we prepare for you will show the average rate of VAT which you are paying on your gross turnover. This can have two uses:

Budgeting

You may estimate your company’s VAT liability for the next quarter by multiplying your gross receipts by the average rate of VAT. This means that you can get the cash ready in order to meet your liability.

The Flat Rate Scheme

Smaller companies, having a net turnover less than £150,000 per year, may consider a change to the Flat Rate Scheme. We will look at your average VAT rate and compare it to the Flat Rate for your particular industry, and we can tell you if you are likely to save tax by adopting FRS. Another advantage of FRS are that you may be able to deal with us entirely by e-mail. You will need to leave FRS if net turnover exceeds £230,000 per year.

When VAT began in 1972, the rate was just 8%. Since then the rate has crept up to 20% which is too high in our opinion. The Flat Rate Scheme can represent an effective cut in rate of 1 or 2%, which is not much but better than nothing. We’re just generally committed to saving you taxes and making life easier for you.