VAT (Value Added Tax) is famously complicated and is often subject to HMRC inspections. As your accountant, we will ensure your business stays compliant with the law and that you do not overpay.
Welcome to Archimedia Accounts, VAT accountants
At Archimedia Accounts, we are experts at VAT accounting for small businesses. As your dedicated accountant, we will support you with your VAT returns and ensure they are filed accurately and on time to HMRC.
We’ll also conduct tax planning sessions with you throughout the year to ensure you’re saving as much as possible.
What does a VAT accountant do?
There are hundreds of transactions in a business which must all carry the correct VAT code. VAT accountants have extensive knowledge of VAT legislation, and it is their job to ensure your transactions are coded accurately to keep your business compliant.
The most efficient way to do this is with the latest cloud-accounting software, such as Xero, to help you meet your obligations under Making Tax Digital.
Then, once per month or quarter (depending on when your VAT returns period is), your accountants will thoroughly check your VAT calculations before submitting your VAT return to HMRC. They will inform you of your VAT bill and how to go about paying it.
A great VAT accountant, like Archimedia, also uses their professional insight to help your business take advantage of any VAT reliefs and schemes so that you do not overpay.
Why use an accountant for VAT?
Some business owners choose to do their own VAT returns, but by doing so, they risk making costly mistakes.
VAT is one of the most complicated taxes and is probably treated with the most severity by HMRC. The last thing you want is a VAT inquiry that uncovers errors. They may be genuine errors, but your business will still be forced to pay hefty fines and be targeted for future inquiries.
Good VAT accountants know the law inside out and ensure every single business transaction is correct through a detailed VAT procedure (conducted once at the bookkeeping stage and then again before filing the VAT return).
Though compliance is important, you also want to ensure you’re saving as much VAT as you’re entitled to. For example, we will advise you on the best VAT scheme (e.g. Flat rate scheme, Cash, Margin, Retail etc.) to help you save.
We’ll also identify areas that could be losing your business £1,000s each year, for example:
- Non-business use
- Vehicles and fuel
- Complications with overseas suppliers/customers
- “Non-standard” transactions
- Capital items etc.
You can rest assured that we will leave no stone unturned when it comes to finding VAT savings to benefit your business.
Our VAT services
At Archimedia Accounts, we are VAT specialists and provide a range of services depending on your business needs, time and budget.
If you have an existing bookkeeper that’s very skilled and you’re happy with them, we can offer a more regular service whereby they do the bookkeeping, and we check all the transactions for correct VAT coding and submit the VAT return to HMRC every month or quarter. Alternatively, we can take on your entire bookkeeping process.
We will help you to calculate your VAT return and submit it to HMRC each year, to save you time and hassle. We will, of course, always let you know how much VAT to pay and when your VAT payments are due.
Xero for digital VAT returns
Making Tax Digital for VAT was made compulsory in 2022 and requires businesses to use compatible software to maintain their VAT records and submit VAT returns digitally.
Nearly all of our clients use Xero accounting software, but if you are committed to Sage, we can still support you by using bridging software.
A full VAT accounting service
Most of our clients find it beneficial for us to take care of the whole VAT accounting process, from bookkeeping, VAT planning and tax returns. That way, they can rest easy knowing that they remain compliant and save as much VAT as possible. It also saves them valuable time to concentrate on their business and their family.
Get in touch with Archimedia Accounts for your VAT return
The Archimedia Accounts team are here to help with all of your company’s VAT issues, from tax planning to bookkeeping and tax returns. As your VAT team, we will not only keep you compliant, we will provide advice and identify valuable savings to make sure your company minimises its VAT bill.
We can also offer professional business advice and accounting services to ensure your company accounts remain in good shape for the future.
Please get in touch by calling, emailing or filling out our contact form. We look forward to hearing from you.
Why should I register for VAT?
You are required to register for VAT once your annual turnover exceeds the threshold, which changes each year but is currently £85,000. Once registered, you will start to charge VAT on services provided and can claim back VAT on goods and services your business purchases or pays for.
Do sole traders have to register for VAT?
Yes, regardless of whether you are a sole trader or a limited company, you must register for VAT once you exceed the threshold.
Do you have to be VAT registered to claim back VAT?
Yes, you do have to be VAT registered to claim VAT. There is one small exception to this; if you’re a visitor from overseas. But in all other cases, you need to be VAT registered.
How do I calculate VAT liability?
VAT liability is calculated by deducting all the input VAT (i.e. the VAT you claim back on items you’ve purchased) from all the output VAT (i.e. VAT charged to your customers). The rules are complicated, which is why it is beneficial to seek the expert advice of an accountant.
What triggers a VAT audit?
HMRC have a VAT investigation team dedicated to identifying false VAT claims. These audits can be at random but are often caused by red flags, such as a company continuously re-claiming VAT or signs that a company’s accounts are not being managed professionally.
Can an accountant help me register for VAT?
Yes, as your accountant, we can help you with the VAT registration process.