When you start in business, you will be faced with weather to register for VAT from the start or later on once the business is established and it becomes compulsory for you to register. We will advice, evaluate and mange everything for you.
VAT is a complex area of tax, there are many different types of scheme for companies and individuals to adopt, we will consider the best option for your business circumstance to choose from, weather the standard rate, Flat rate, and etc.
VAT schemes to consider are:
Standard rate 20%
The amount of VAT a business pays or claims back from HM Revenue and Customs is usually the difference between the VAT charged by the business to customers and the VAT the business pays on their own purchases.
- you pay a fixed rate of VAT to HMRC
- you keep the difference between what you charge your customers and pay to HMRC
- you cannot reclaim the VAT on your purchases – except for certain capital assets over £2,000
VAT margin schemes tax the difference between what you paid for an item and what you sold it for, rather than the full selling price. You pay VAT at 16.67% (one-sixth) on the difference.
VAT for builders
VAT for most work on houses and flats by builders and similar trades like plumbers, plasterers and carpenters is charged at the standard rate of 20% – but there are some exceptions. such as zero rates and reduced rate.
To discuss how Accountants in Slough can assist you with your Accounts Preparation, please contact us for a free, no obligation consultation on: 01753 373 505 or complete our Contact form and we will get back to you promptly.