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Business response to General Election on 8 June
In response to the announcement of a General Election on 8 June Carolyn Fairbairn, CBI Director-General, said:Read more >
9 May 2017
Changes to the PAYE Tax system using Real Time Information
HMRC have announced that from the end of May 2017 they will be using Real Time Information (RTI) to make adjustments to employee tax codes i...Read more >
7 May 2017
Class 4 National insurance u-turn
One of the significant announcements Chancellor Philip Hammond made on Budget Day was the proposed increases to the main rate of Class 4 Nat...Read more >
14 Apr 2017
Solihull Chamber survey surprises
Last week Kevin Johns, Prime’s Managing Director and President of the Solihull Chamber, hosted the Solihull Chamber Breakfast. The eve...Read more >
17 May 2017
What business can learn from sport
There are many correlations between Sport and Business, the planning and discipline that goes into being a successful athlete are equally ap...Read more >
8 Dec 2016
Be prepared, the National Minimum Wage rises on October 1st 2016
As of 1st October 2016 the National Minimum Wage rates for apprentices and different age bands will increase. Last year HMRC investigated mo...Read more >
28 Sep 2016
Contact Prime Today
To discuss you VAT registration requirements, please contact us for a free initial meeting.Please Email Us >
Should you be VAT registered? Until your business reaches the compulsory VAT registration threshold, you will have the choice to become voluntarily VAT registered. Whereas businesses reaching the compulsory threshold must make an application to become VAT registered with HMRC and subsequently file VAT returns.
As a business, there are certain advantages and disadvantages you may wish to consider when deciding whether or when to become VAT registered. The majority of businesses use the default accruals based scheme to calculate the amount of VAT they owe each quarter. However, there are various VAT schemes available (some help reduce the amount of VAT payable) and Prime can assist you in selecting the one that is most appropriate for your business and complete your online application for you:
Annual Accounting Scheme
Based on the VAT that your company paid the previous year, under the Annual Accounting Scheme you pay VAT on account in nine monthly or three quarterly instalments. Only one VAT Return is required to be completed at the end of the year, giving you a reduction in administration. However it does not remove the requirement to keep all required VAT records and accounts nor is this scheme suitable for businesses that regularly reclaim VAT.
Cash Accounting Scheme
For businesses with a turnover of less than the scheme limit the Cash Accounting Scheme entitles you to pay VAT once your customer has paid you. However, you cannot reclaim VAT on your purchases until you have paid for them. Beneficial for businesses with customers who are slow to pay or are prone to non payment, the Cash Accounting Scheme may not be viable if you regularly reclaim more VAT than you pay.
Flat Rate Scheme
Only available for businesses with a turnover of less than the scheme limit, the Flat Rate Scheme offers a range of flat rates depending on your trade sector. Although you cannot reclaim VAT on your purchases (with some exceptions) under the Flat Rate Scheme, smaller businesses may benefit from reduced accounting time by just paying a flat rate on their turnover and may pay less VAT overall.
Call Prime Today - we're here to help
Prime Chartered Accountants can advise you if and when VAT registration is suitable for your business and help you to decide which VAT scheme is appropriate. Contact the Prime team for further advice.
Coventry - 024 7651 8555 or Solihull - 0121 711 2468