Frampton & Co Chartered Accountants | VAT Services
VAT stands for Value Added Tax, which is a tax that businesses must charge on most goods and services they sell in the UK. VAT is also charged on some goods and services that are imported from outside the UK. The standard rate of VAT is 20%, but some items are charged at a reduced rate of 5% or a zero rate of 0%. Some items are exempt from VAT or outside the scope of VAT.
Businesses that have a turnover of more than £85,000 in a 12-month period must register for VAT with HMRC and charge VAT on their sales. They must also pay VAT on their purchases and expenses. Businesses that have a turnover below this threshold can choose to register for VAT voluntarily if they wish to do so. Businesses that are registered for VAT must keep accurate and complete records of their sales and purchases, and submit VAT returns to HMRC every month, quarter, or year, depending on their chosen accounting scheme. They must also pay any VAT due to HMRC by the deadline, or claim any VAT refund if they have paid more VAT than they have charged.
