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featured, one offs »

[29 Jul 2010 | No Comment | ]
A “VAT only” invoice

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A one off process when the VAT details arrive late

There are times when an application for VAT registration is delayed, and in a few cases that can mean that your business ought to have charged VAT to customers but couldn’t, because the VAT registration number was not known.

In situations like these, it is necessary to issue a “VAT only” invoice as soon as your registration number is known. There are three examples of invoices on this Excel file …

routine »

[27 May 2010 | No Comment | ]

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What is the VAT treatment on recharged expenses?

There is little logic in VAT legislation, and so the system is set out here for your information. Whether we like it or not, we have to follow the rules!
If you are VAT registered, then you charge VAT to your clients, on top of the cost of your product or services.
If in the course of doing that you incur expenses and you want to recharge those expenses, then you have to charge …

one offs »

[28 Apr 2010 | No Comment | ]

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Tidying things up nicely

Some clients have a fully managed service from us and some of them do their own VAT. If you’re in that second category and you now need to de-register for VAT, the you need this form:
Form VAT7
Experience tells us that when filling it out, it’s easiest to tick BOX E on page 4  and add the cessation date, skip page 5 and go directly to page 6.
Question 7 is about how much VAT you might “owe” …

one offs »

[29 Dec 2009 | No Comment | ]

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VAT rate updated to 17.5%

With effect from 1 Jan 2010 the VAT rate returns to the once customary level of 17.5%. It was temporarily reduced to 15% on 1 Dec 2008 as part of the government’s financial stimulus.
All VAT registered businesses will need to charge VAT at 17.5% when appropriate on invoices raised from 1 Jan 2010.
VAT returns on line – soon to be compulsory

In their recent VAT update leaflet, HM Revenue & Customs have told us that all …

routine »

[26 Oct 2009 | No Comment | ]

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Who charges VAT and to whom?
VAT is a complex area of law, and it revolves around a “person” as a legal entity and not a “business”. Generally, a “person” can be:

an individual
a limited company
a partnership

If you are not VAT registered, you do not charge customers VAT. This earlier report discusses the question of registration.
Once registered, the VAT registration number is allocated to only one “person” and can be used by only that “person”. If you are both a self …

one offs »

[17 Aug 2009 | One Comment | ]

This page has moved to . . .

one offs »

[14 Aug 2009 | No Comment | ]

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VAT is a complicated area

VAT is a tax on the end consumer, and is not necessarily a tax on the businesses through which the VAT passes. In effect, a VAT registered business becomes an unpaid tax collector for the government. End consumers are normally households and shoppers, but any businesses which are not VAT registered and which cannot reclaim any VAT are also end consumers.
There are three main categories of business in the UK . . .

The small businesses …

one offs »

[31 Jul 2009 | No Comment | ]

Alignment of VAT quarters with the trading year
For reasons which are best known to the VAT office, they often seem to fix your quarterly VAT cycle according to some random and magical formula. If your business is anything like ours, then we think that the VAT quarters should coincide with the end of the trading year. If your VAT quarters are not yet aligned, a short simple letter should do the trick.
We have tried doing this on behalf of clients, but the VAT office seems to prefer to receive the …

one offs »

[9 Jun 2009 | No Comment | ]

VAT on line
Log in to your tax account . . .
If you don’t have a Government Gateway account yet, you can create one by following this report. If you do have one, continue working on this page.
Select “Manage Account” and work through these screens . . .

Enter our agent code including the capitals and the hyphen just like this:

It will take about 24 hours for all HMRC systems to be updated. Once that happens we will be able to submit VAT returns on your behalf.

featured, one offs »

[8 Jun 2009 | One Comment | ]

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Doing things electronically – VAT on line

As a result of Government initiatives, particularly in 2007, a number of services can be accessed over the web provided that you have a Government Gateway username and password. It’s often a two tier system which relies on first having a Government Gateway account and then subscribing to other services.
Setting up a Government Gateway Account
Visit http://www.gateway.gov.uk/ and select Register.
It will take a few days to have everything in place and for confirmation to …