VAT Accounting Services in Haywards Heath
Make VAT work for you and your business with quality, jargon-free VAT accounting services from our expert advisors.
Optimise cashflow, power-up profitability and conquer VAT worries
VAT can seem like an overbearing beast for any business owner to deal with, but with help from Hentons VAT Accounting services, you can take advantage of various schemes and legislation to make VAT work for you.
- Making Tax Digital
From April 2019 digital record keeping and automated filing of VAT returns became mandatory for businesses with a turnover above the VAT threshold, which is £85,000. From 1 April 2022 all VAT registered businesses must sign up, whatever they earn. We can help make that process as painless as possible for you and your business.
VAT registered businesses must:
- Keep VAT records for at least 6 years (or 10 years if you used the VAT MOSS service).
- Keep copies of all the sales invoices you issue even if you cancel them or produce one by mistake
- Keep all purchase invoices for items you buy
- If you’ve lost a VAT invoice or it is damaged and no longer readable, ask the supplier for a duplicate (marked ‘duplicate’)
- HMRC can visit your business to inspect your record keeping and charge you a penalty if your records are not in order.
- You cannot reclaim VAT using an invalid invoice, pro-forma invoice, statement or delivery note
- Different Accounting Schemes
Usually, the amount of VAT you pay HM Revenue and Customs (HMRC) is the difference between your sales invoices and purchase invoices. You have to report these figures and pay any money to HMRC even if the invoices have not been paid. There are various different schemes available for these payments and we are here to advise on which is best for your business.
Cash Accounting Scheme
- Pay VAT on your sales when your customers pay you
- Reclaim VAT on your purchases when you have paid your supplier
- To join the scheme your VAT taxable turnover must be £1.35 million or less.
Margin Scheme
- You can choose to use this scheme when you sell; second hand goods, works of art, antiques, collectors’ items.
- 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 must record certain information for each item you buy and sell that you want to use a margin scheme for.
- You must also keep: a stock book that tracks each item sold under the margin scheme individually and copies of purchase and sales invoices for all items
- If some of the items you buy and sell are not eligible for a margin scheme, you pay and charge VAT for those items in the normal way.
Flat Rate Scheme
- 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
- To join the scheme your VAT turnover must be £150,000 or less (excluding VAT), and you must apply to HMRC
Retail Scheme
There are 3 standard VAT retail schemes:
- Point of Sale Scheme – you identify and record the VAT at the time of sale
- Apportionment Scheme – you buy goods for resale
- Direct Calculation Scheme – you make a small proportion of sales at one VAT rate and the majority at another rate
If your turnover excluding VAT is over £130 million you must agree a bespoke retail scheme with HM Revenue and Customs (HMRC).
You can use a retail scheme together with the Cash Accounting Scheme and the Annual Accounting Scheme.
You can join a retail scheme at the beginning of any VAT period. You don’t need to tell HMRC.
It’s up to you which scheme you join. The calculations you have to do vary for each scheme.
Your VAT accountants - providing VAT accounting services in Haywards Heath.
At Hentons Accounting we can help you navigate all areas of VAT and can even act as an agent to submit your returns to HMRC on your behalf. Say goodbye to long, arduous phone calls and data entry and hello to managed VAT accounting.
