VAT
VAT can be both problematic from the correct processing method to dealing with filings and HMRC.
It can be easy to make mistakes when it comes to VAT, and if HMRC catches wind of it, they can come down hard on businesses.

This is why it is so important to make sure that everything is done correctly from the start. At Tradermate we can help you work out when you will reach the threshold, when and how to register for VAT, and how to manage your accounts to make those VAT returns each quarter, through Xero, ensuring you’re compliant for the new Making Tax Digital rules.

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Here is what we get asked most...
How does VAT work?
If a business meets certain criteria, they must charge the appropriate VAT on their invoices. When a VAT registered company is charged VAT on invoices, they keep a record of how much VAT they are charged. The amount payable to HMRC is the amount the business has charged, less the amount the business has been been charged. VAT is usually calculated quarterly, a return is completed with the details of what VAT is included, and submitted online to HMRC.
Which VAT scheme should I use?

The 2 most commonly used VAT schemes are cash and accrual. The VAT cash scheme allows you to account for VAT on your sales on the basis of the payments you receive, rather than the invoices you issue. The VAT accrual scheme allows you to account for VAT on your sales on the basis of what’s been invoiced, regardless of whether those invoices have been paid or not.

There are other VAT schemes, such as the flat rate scheme and the retail scheme. To know which scheme is the best fit for your business, talk to your accountant or bookkeeper for more information.

Can I claim VAT without a receipt?
To reclaim VAT on a purchase, you need to have a valid VAT receipt (or VAT invoice) as proof of the purchase you’ve paid VAT on. If you don’t have a valid receipt, you cannot claim the VAT.
Can VAT be refunded?
If you have paid out more VAT in a period than you have charged, you can reclaim that back.