Key VAT Considerations
- Need help with VAT-related questions?
- Looking for professional advice on VAT check-ups?
- Experiencing setbacks with VAT returns?
- Ensuring your VAT returns are properly managed?
- Require assistance with VAT registration?
VAT Accounting Services
VAT is the tax that catches business owners who have come to the UK from Russia, Ukraine, Poland, Lithuania or Latvia, because it works differently from the VAT they knew at home and because HMRC only explains it in English. Vtrahe does VAT registration, the quarterly returns and the HMRC correspondence for businesses across Birmingham, and we explain every step in Russian if that is the language you think in.
VAT By Trade
Most of our VAT clients are in 6 lines of business, and each one has its own trap.
| Trade | What catches people | Flat rate % |
|---|---|---|
| Construction subcontractor | Reverse charge: do not add VAT on invoices to a VAT registered contractor | 14.5% labour only, 9.5% with materials |
| Beauty and hairdressing | Chair and room rental is VATable at 20%, not exempt | 13% |
| Takeaway and restaurant | Hot food and eating in are 20%, cold takeaway food is 0% | 12.5% |
| Cleaning | Nearly all labour, so flat rate usually loses money after the 16.5% limited cost rule | 12% |
| Couriers and transport | Fuel VAT is the main reclaim, flat rate gives it up | 10% |
| Online sellers | Import VAT on stock from the EU, marketplace rules on Amazon and eBay | 7.5% retail |
Why Choose Vtrahe for VAT Accounting?
Blunder in VAT accounting can lead to massive penalties, from mistake to late submissions. Even small errors can impact your company finances. That’s why it’s vital to give responsibility for your VAT to Vtrahe. As trust VAT accountants in birmingham, we provide adept care to cover your business from expensive mistakes.
Staying on top of these key points can avert VAT issues. However, many businesses fight to keep up with the ever-changing rules. That’s where Vtrahe steps in our team of professional English and Russian-speaking VAT accountants law firm specializes in supporting businesses of all sizes, from startups to settled undertaking across birmingham.
Expert VAT Accountants
Navigating VAT requirements can place further struggle on your staff. Our experience VAT accountants are here to help, guarantee your management processes run effortlessly. We handle every step of your VAT returns with exactitude to minimize the threat of errors or holdup.
One of the most important aspects of running a business is ensuring that VAT returns are filed on or before the due date. Vtrahe is here to assist you with expert VAT return services, handling tasks that require precision and attention to detail, so you and your team can stay focused on core business activities.
With Vtrahe, you’ll receive skilled support every step of the way, ensuring compliance with ever-changing VAT laws. Our team stays up-to-date with the latest regulations, allowing us to guide you through the process confidently.
Whether you need a review of your Law Firm & Accountants department’s work or a complete VAT return service, Vtrahe is ready to assist and answer any questions you may have.
Since Brexit, goods arriving from Poland, Lithuania or Germany are imports. VAT is due at the border, and unless the business uses postponed VAT accounting it pays the VAT to the courier or freight agent up front and waits until the next return to get it back. With postponed accounting the import VAT is declared and reclaimed on the same return, so no cash leaves the business.
This needs the business’s EORI number on the customs paperwork and the monthly postponed VAT statement downloaded from HMRC. A lot of the import businesses we take on have been paying at the border for years because nobody told them.
FAQ's
Consumer prices in the UK include VAT, but business to business invoices show it separately, and once you are registered you charge it on top of your price to other businesses. If your customers are the public you cannot pass it on, which is why registering makes a takeaway or salon 20% dearer overnight unless prices are cut. If your customers are VAT registered businesses, yes, usually. They reclaim what you charge and you reclaim VAT on your van, tools and materials. If your customers are the public, no, unless you have big set up costs to reclaim. Goods still in the business bought up to 4 years before registration, and services bought up to 6 months before. Keep the invoices. No. Under the construction reverse charge the contractor accounts for it. Your invoice states that the reverse charge applies and shows no VAT. See the CIS page. The business does, but a mistake corrected before HMRC finds it carries a much lower penalty, often nil. Errors under £10,000 go on the next return; larger ones go on form VAT652. We check the last 4 returns of every new client for exactly this reason.In Russia VAT was included in every price. Is it the same here?
Should I register before I reach £90,000?
Can I reclaim VAT on things I bought before I registered?
Do I need to charge VAT on labour to a contractor who is VAT registered?
My previous accountant made a mistake on a return. Who pays the penalty?
VAT Services We Provide
- Registration, including checking whether registering early would help.
- Quarterly MTD returns.
- Scheme comparison on your own numbers, and switching if the answer changes.
- Postponed VAT accounting and EORI set up for importers.
- Reverse charge invoicing for CIS businesses.
- Correcting past returns and voluntary disclosures.
- HMRC letters, inspections and appeals.
Returns, Deadlines And What Late Costs
The return and the payment are due 1 month and 7 days after the end of each VAT quarter, filed through Making Tax Digital software. We work in Xero, QuickBooks and FreeAgent.
Late return: 1 penalty point each time. At 4 points on quarterly returns HMRC charges £200, then £200 for every late return after that until you have filed on time for 12 months.
Late payment: Nothing for 14 days. Then 3% of what is outstanding at day 15, another 3% at day 30, then 10% a year charged daily from day 31, with interest running from day 1 on top. On a £10,000 quarter paid 6 weeks late that is around £900 gone.
A Time to Pay arrangement agreed with HMRC before day 15 stops the penalties. If the money is not going to be there, tell us before the deadline rather than after and we make that call.
Contact Us Today
Call +44 7756 548969 or fill in the Client Registration Form.
If you think you may already be over £90,000, send the last 12 months of sales and we will tell you where you stand before HMRC does. Rules on gov.uk.
