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VAT Application
Option 1:£175 Buy Now
Option 2:£290 Buy Now


VAT Application Initial Questionnaire
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VAT

We can assist you from applying for a VAT Number on your behalf to filing of your VAT Return. VAT is a burden for all successful companies on a day to day basis. We can review your VAT records and provide assistance with all your VAT reporting. We will monitor your business for any potential VAT problems and help you plan your future in the most efficient way. We can liaise with H M Customs & Excise on your behalf and provide a general support facility for your company.

Our Fees:

VAT Application
  • Option 1: Process VAT Application only (process the whole application and submit it to HMRC only)
    Fee £175 Buy Now

  • Option 2: Process VAT Application and submission to HMRC, liasing with HMRC and the client and dealing with additional questions arise during the application
    Fee £290 Buy Now
VAT Return
  • If you have contracted us to provide you with Book keeping Services we charge you an additional £ 10 to fill the form and file the return with HM Custom and Excise
  • If you wish to contract us to prepare and file the VAT Return only our fees will vary from £75 to £125 per quarter.
  • We can also assist you on VAT Investigation and we charge an hourly rate


General Information

What is VAT?
Value Added Tax (VAT) is a tax charged on most business transactions made in the UK or the Isle of Man.

It is also charged on goods and some services, imported from places outside the European Union and on goods and some services coming into the UK from the other EU countries.

All goods and services that are VAT rated are called 'taxable supplies'. You must charge VAT on your taxable supplies from the date you first need to be registered. The value of these supplies is called your 'taxable turnover'.

Some examples of taxable supplies:
  • selling new and used goods, including hire purchase
  • renting and hiring out goods
  • using business stock for private purposes
  • providing a service, for example hairdressing or decorating and
  • charging admission to enter into buildings.

If you are VAT registered, you will charge VAT on many goods and services you supply to customers in the UK and Isle of Man.

VAT does not apply to certain services because the law says these are 'exempt' from VAT. These include loans of money, some property transactions, insurance and certain types of education and training. Supplies that are exempt from VAT do not form part of your taxable turnover.

There are three rates of VAT in the UK:
  • 17.5 per cent (standard-rate)
  • 5 per cent (reduced rate)
  • 0 per cent (zero-rate).

You will probably have to register for and charge VAT if:
  • your taxable turnover reaches or is likely to reach a set limit, known as the VAT registration threshold
  • you have taken over a business as a going concern or
  • you acquire goods from other European Union countries.

The current VAT registration threshold is £64,000. But you can opt to register for VAT if your taxable turnover is less than this and if what you do counts as a business for VAT purposes.

Do I have to register for VAT?

If you are in business and your taxable turnover, not just your profit, goes over the registration threshold you become a 'taxable person'. You must then register for VAT. If you don't register at the correct time you could be fined.

You must register for VAT if:
  • at the end of any month the total value of the taxable supplies you have made in the past twelve months or less is more than the current threshold - £64,000 and
  • at any time you have reasonable grounds to expect that the value of your taxable supplies will be more than the current registration threshold - £64,000 - in the next thirty days alone.

These rules also apply when you take over a business as a going concern. It doesn't matter whether the last owner was registered:
  • if the business is trading at a level above the limit then you'll need to register and
  • your date of registration will be the day you take over the business.


To register for VAT you must complete Form VAT 1, which you must send to Revenue & Customs within 30 days of any of the above.

What is taxable turnover?
All goods and services which are liable to VAT at the standard, reduced or zero-rate are called 'taxable supplies', whether you are registered for VAT or not. The total value of these supplies is called your 'taxable turnover'. If you are in business and your taxable turnover reaches or is likely to reach the registration threshold you will probably have to register for VAT. You must charge VAT on your taxable supplies from the date you first need to be registered.

If you receive certain services from abroad, for example advertising, data processing, consultancy or legal, accounting or professional services, these will be treated as if you supplied them and you must include the value in your taxable turnover.

What are input tax and output tax?
Input tax is the VAT that you pay out to your suppliers for goods and services that you purchase for your business. It is VAT on goods or services coming IN to your business. Input tax is the VAT that registered businesses can reclaim.

Output tax is the term used to describe the VAT on your sales of goods or services. Output tax is the VAT on goods or services going OUT of the business. Output tax is the VAT you collect from your customers on each sale that you make.

Why would I want to register for VAT if my taxable turnover is below the threshold? If your taxable turnover is below the registration threshold you can apply for 'voluntary registration', if you can prove that what you do is a business for VAT purposes. There are advantages and disadvantages to registering voluntarily. Before you apply weigh up carefully whether it will benefit you.

Benefits include increased credibility for your business and, if your business makes standard or zero-rated supplies, you'll be able to claim back input tax.

However, once registered for VAT, you'll have to:
  • account for output tax on all your taxable supplies
  • keep proper VAT records and accounts and
  • send in VAT returns regularly.


What are the exceptions?
No VAT is charged on taxable supplies made by a business which is not, and is not required to be, registered for VAT. These are known as 'outside the scope' supplies.VAT does not apply to certain services because the law says these are 'exempt' from VAT. These include loans of money, insurance, certain types of education and training and some property transactions (selling, leasing and letting land and buildings, but not garages, parking spaces, hotel or holiday accommodation).

Supplies that are exempt from VAT do not form part of your taxable turnover.

If the only services you supply are exempt supplies, you can't normally be registered for VAT. If you are registered for VAT and have some exempt supplies you may not be able to get all your input tax back.

What if all my goods are zero-rated?
If you only supply goods that are zero-rated, you may not have to register for VAT even if your taxable turnover goes above the registration threshold, but you do have to tell HMRC first and apply to be 'exempt from registration'.

I'm a small business - is there anything that will make VAT simpler?
There are a number of simplified arrangements to make VAT accounting easier for small businesses:
  • Annual accounting
    If you use the annual accounting scheme you pay monthly or quarterly instalments towards an annual VAT bill. This evens out VAT payments and helps smooth cash flow. At the end of the year you submit a single annual return and any balance due.
  • Cash accounting
    If you use this scheme, you account for VAT on the basis of payments you receive and make, rather than on invoices you issue and receive. This means you don't pay us VAT until your customers pay you.
  • Flat rate scheme
    This makes VAT simpler by letting you calculate your VAT payment as a flat rate percentage of your turnover. The percentages are decided according to the trade sector your business is in. Under the scheme you won't be able to reclaim any of the VAT you pay, as this is taken into consideration as part of the percentage calculation.
  • Retail schemes
    If you sell direct to the public you may find it difficult to issue a VAT invoice for each sale. There are several retail schemes available that may help.
  • Bad debt relief
    If you make supplies of goods or services to a customer but you are not paid you may be able to claim relief from VAT on the debts.

Fides Partners Limited can help you with your VAT so that you comply with your requirements.

Please contact us for further details


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