There are different VAT schemes which may help you to simplify your VAT recording.
HMRC have recognised that VAT can be onerous for smaller businesses and also that payments of VAT each quarter can be difficult to manage from a cash flow point of view.
There are some VAT schemes which can help with these issues and these are:
- Annual accounting scheme – you make advance payments on your VAT bill monthly during the course of the year and file one return at the end of the year.
- Flat rate scheme – you pay a fixed rate of VAT on your sales and don’t reclaim VAT on your purchases making the calculations much simpler
- Cash accounting scheme – you pay VAT only once your customers have paid you and you reclaim VAT only when you have paid your suppliers making your cash flow easier to manage
If you would like help to understand whether you should be using one of these schemes and whether or not you would be eligible, why not give us a call?
I work with Val and beyond the Numbers, because they are exactly that..more than just the numbers. They work hard to understand my business, understand the business needs that are unique to me. They then shape the support and service around those needs.
What I particularly like is that they are up for doing all sorts of support, from basic book-keeping, through to strategic challenge and insight. Trusted partners.
Martin Ewart, Bigwheel Leadership Ltd
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