Do you want to capture more value to your bottom-line?

Business owners and sole traders are consistently making decisions. Identifying opportunities and selecting the option for your business can be complex and frankly a hassle.  This Insight provides a refresh of the VAT options and opportunities to capture more value to your bottom-line.

The bottom line value VAT Scheme opportunities are:

The BenefitConsider a VAT Scheme to
Saving you Time, Effort and ResourcesSimplify your administration and record keeping
Save you Time and CostSimplify the frequency and recording processes
Improve the completeness of your recordsReduce the burden on record keeping
Optimising your Tax paymentsMatching your tax payments to your cash flow
Improve your customer experienceSimplify your invoices and processes

Actioning the above gives you FREE additional benefits reducing your tax non-compliance risks by: –

  • Reduced risk of costs of penalties and fines
  • Reduced risk and the effort required to remediate mistakes or errors

HMRC understand your business needs and offers you options. HMRC advise you to contact your accountant or tax advisor.

To assist you we have set out below a summary of some opportunities and considerations.

The Consideration of the Nature, Scope and Scale of Your Business:

  1. Does your turnover meet the VAT Supply registration criteria?
Your OpportunityAction
Does your VAT turnover exceed more than £85,000 p.a. now or in next 12 months?Register
If your turnover is less than £85,000 can you still register to recover input VAT?Yes, but additional considerations are required
Does your business supply any exempt goods and servicesConsider c) below and if you require further information contact us
  1. Which VAT rate to apply for my supplies (Turnover):

Three different VAT rates apply and it is important you charge the correct rate.

  1. The Standard Rate, currently 20%;
  2. The Reduced Rate, currently 5% for certain goods and services e.g. energy saving goods and domestic energy supplies; and
  • Zero Rates applies to specific goods and services e.g. qualifying products and services for children’s clothing, food products, health and safety, welfare services, publications and
  1. Does your business qualify under a special scheme or exemption? To complete an assessment, you can consider factors like
  2. Are my invoices just recovering costs and disbursements commissioned by the customer?
  3. Are my goods or services exempt supplies e.g. sports activities, betting, antiques, medical treatment etc.
  • Does my business qualify as a qualifying institution or registered provider e.g. nursing home or educational or health care service etc.

Can your business take advantage of any of the opportunities offered by the VAT small business schemes?

HMRC understands small businesses challenges and the higher cost of compliance. They have tailored schemes for small businesses to simplify and achieve efficiencies. Have you assessed the opportunities from the schemes available to you? Set out below is a summary of the VAT Schemes opportunities that deliver benefits to you as a business: –

OPTIONS FOR YOUAVAILABLE SOLUTIONS
Would submitting your VAT return annually, instead of quarterly returns saving you time and effort?ANNUAL ACCOUNTING SCHEME: You pay a fixed amount quarterly based on the prior year and then file a one annual VAT Return. Available if your turnover below £1.35 million.

Do you offer customers credit?

If so would your businesses cash flow benefit if VAT was based on when customers and suppliers are paid, rather than invoice date.

CASH ACCOUNTING SCHEME:  VAT payments are harmonised to your cash flow based on the difference between your receipts and payments. Available if your estimated turnover is below £1.35 million.
Are you trading in works of art, antiques, collector’s items, or second-hand goods?

MARGIN SCHEME: VAT is based on a fixed rate (one-sixth) of the difference between your revenue and costs.

Restrictions apply and special rules are in place for certain businesses.

Goods supplied or purchased which are non-qualifying are treated in the normal way.

Would a simplified fixed rate of turnover make VAT record keeping, reporting and payment easier for you?FLAT RATE SCHEME:  Qualifying businesses with turnover less than £150,000 can use a standard flat rate to simplify VAT recording and computations.

Would simplification of your sales price and record keeping at the point of sale benefit you?

Do you supply a large number of low-value goods or services in high volume?

RETAIL SCHEME: This scheme can be used in addition together with the Cash Accounting and /or Annual Accounting Scheme. Available to Firms with a turnover and VAT charge below £130 million.

There are 3 standard ways available to operate this scheme and separate rules for certain sectors.

Restrictions apply to some schemes. Restrictions apply if you want to change your scheme.  Each of the tabled VAT schemes offers bottom-line value benefits. Which one is right for You? If you are interested in guidance or help to select the option(s) for your business, please call or contact Boone Henry now. We would be happy to discuss how we can assist you.

Record Keeping

As a further reminder your business may benefit from continually checking

  • Are your Invoices compliant VAT regulations?
  • Do your accounting records support the capture and accurate processing of VAT inputs and outputs?
  • Are your forecast cash flows adequately incorporating VAT estimations?
  • Have you notified all your suppliers of your VAT registration status?

Your VAT obligations as a business is to assess, register, report and pay as required.  The HMRC sets the required standards and criteria to be met for VAT recording and record keeping.

If you would like discuss the any aspect of your business with us, please contact us on info@boonehenry.co.uk or 0788 419 2408.

Do you want to capture more value to your bottom-line?

Business owners and sole traders are consistently making decisions. Identifying opportunities and selecting the option for your business can be complex and frankly a hassle.  This Insight provides a refresh of the VAT options and opportunities to capture more value to your bottom-line.

The bottom line value VAT Scheme opportunities are:

The BenefitConsider a VAT Scheme to
Saving you Time, Effort and ResourcesSimplify your administration and record keeping
Save you Time and CostSimplify the frequency and recording processes
Improve the completeness of your recordsReduce the burden on record keeping
Optimising your Tax paymentsMatching your tax payments to your cash flow
Improve your customer experienceSimplify your invoices and processes

Actioning the above gives you FREE additional benefits reducing your tax non-compliance risks by: –

  • Reduced risk of costs of penalties and fines
  • Reduced risk and the effort required to remediate mistakes or errors

HMRC understand your business needs and offers you options. HMRC advise you to contact your accountant or tax advisor.

To assist you we have set out below a summary of some opportunities and considerations.

The Consideration of the Nature, Scope and Scale of Your Business:

  1. Does your turnover meet the VAT Supply registration criteria?
Your OpportunityAction
Does your VAT turnover exceed more than £85,000 p.a. now or in next 12 months?Register
If your turnover is less than £85,000 can you still register to recover input VAT?Yes, but additional considerations are required
Does your business supply any exempt goods and servicesConsider c) below and if you require further information contact us
  1. Which VAT rate to apply for my supplies (Turnover):

Three different VAT rates apply and it is important you charge the correct rate.

  1. The Standard Rate, currently 20%;
  2. The Reduced Rate, currently 5% for certain goods and services e.g. energy saving goods and domestic energy supplies; and
  • Zero Rates applies to specific goods and services e.g. qualifying products and services for children’s clothing, food products, health and safety, welfare services, publications and
  1. Does your business qualify under a special scheme or exemption? To complete an assessment, you can consider factors like
  2. Are my invoices just recovering costs and disbursements commissioned by the customer?
  3. Are my goods or services exempt supplies e.g. sports activities, betting, antiques, medical treatment etc.
  • Does my business qualify as a qualifying institution or registered provider e.g. nursing home or educational or health care service etc.

Can your business take advantage of any of the opportunities offered by the VAT small business schemes?

HMRC understands small businesses challenges and the higher cost of compliance. They have tailored schemes for small businesses to simplify and achieve efficiencies. Have you assessed the opportunities from the schemes available to you? Set out below is a summary of the VAT Schemes opportunities that deliver benefits to you as a business: –

OPTIONS FOR YOUAVAILABLE SOLUTIONS
Would submitting your VAT return annually, instead of quarterly returns saving you time and effort?ANNUAL ACCOUNTING SCHEME: You pay a fixed amount quarterly based on the prior year and then file a one annual VAT Return. Available if your turnover below £1.35 million.

Do you offer customers credit?

If so would your businesses cash flow benefit if VAT was based on when customers and suppliers are paid, rather than invoice date.

CASH ACCOUNTING SCHEME:  VAT payments are harmonised to your cash flow based on the difference between your receipts and payments. Available if your estimated turnover is below £1.35 million.
Are you trading in works of art, antiques, collector’s items, or second-hand goods?

MARGIN SCHEME: VAT is based on a fixed rate (one-sixth) of the difference between your revenue and costs.

Restrictions apply and special rules are in place for certain businesses.

Goods supplied or purchased which are non-qualifying are treated in the normal way.

Would a simplified fixed rate of turnover make VAT record keeping, reporting and payment easier for you?FLAT RATE SCHEME:  Qualifying businesses with turnover less than £150,000 can use a standard flat rate to simplify VAT recording and computations.

Would simplification of your sales price and record keeping at the point of sale benefit you?

Do you supply a large number of low-value goods or services in high volume?

RETAIL SCHEME: This scheme can be used in addition together with the Cash Accounting and /or Annual Accounting Scheme. Available to Firms with a turnover and VAT charge below £130 million.

There are 3 standard ways available to operate this scheme and separate rules for certain sectors.

Restrictions apply to some schemes. Restrictions apply if you want to change your scheme.  Each of the tabled VAT schemes offers bottom-line value benefits. Which one is right for You? If you are interested in guidance or help to select the option(s) for your business, please call or contact Boone Henry now. We would be happy to discuss how we can assist you.

Record Keeping

As a further reminder your business may benefit from continually checking

  • Are your Invoices compliant VAT regulations?
  • Do your accounting records support the capture and accurate processing of VAT inputs and outputs?
  • Are your forecast cash flows adequately incorporating VAT estimations?
  • Have you notified all your suppliers of your VAT registration status?

Your VAT obligations as a business is to assess, register, report and pay as required.  The HMRC sets the required standards and criteria to be met for VAT recording and record keeping.

If you would like discuss the any aspect of your business with us, please contact us on info@boonehenry.co.uk or 0788 419 2408.

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