Accounting for VAT

Charging VAT to customers

Businesses registered for VAT should start charging VAT to their customers and keep relevant records. For those businesses with yearly sales expected to exceed the VAT threshold of, currently £68,000 from 1 May 2008 must register for VAT with HM Revenue and Customs or HMRC (formerly known as Customs and Excise).

Invoice to customers

Once registered, your business will be given a VAT registration number. This number must be included on your tax invoices sent to customers for supplies of goods or services. The tax Invoice should also include the date of supply, type of supply, total amount payable and the VAT amount chargeable at the relevant rate. This VAT commonly referred to as sales tax and is to be paid to HMRC by quarterly together with your VAT returns.

VAT return

VAT registered business and companies are required to complete and submit their VAT returns on quarterly or monthly or annually depending on your businesses circumstances. However, normally HMRC will set your return submission dates on quarterly basis.

The VAT form must be completed and returned, together with the tax payable, within one month of the end of the three month period to which it relates. The VAT amount payable to HMRC is the sales tax amount charged to your customers less the tax paid on buying materials and other expenses eligible for VAT reclaim.

Concise Accountancy provides VAT compliance services to individuals and businesses. To help small businesses and newly start-up companies, Concise Accountants offer Business Start-ups packages which include completion of your VAT returns on quarterly basis, year end accounts and corporation tax returns. Our Premium Accounts Package is priced at £1,199 per year. This package gives you a total peace of mind.