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Get ready for the new data protection rules
The government is to introduce new data protection rules under the General Data Protection Regulation (GDPR) which takes effect from 25 May ...Read more >
5 Sep 2017
HMRC online forum and webchat
HMRC have announced the introduction of a new online tax forum and webchat service for small businesses.Read more >
1 Sep 2017
Auto enrolment for new employers
Under pensions auto enrolment employers have to enrol qualifying employees into a workplace pension. Duties include paying contributions for...Read more >
1 Sep 2017
Solihull Chamber News Column - 24th August 2017
The Chamber’s Quarterly Business Report (QBR) always highlights some interesting information on what is happening in the business worl...Read more >
24 Aug 2017
Solihull Chamber News Column - 10th august 2017
As Brexit becomes a reality, the Chamber of Commerce’s International Hub is stepping up its drive to encourage and help businesses to ...Read more >
10 Aug 2017
Solihull Chamber News Column - 20th July 2017
I read recently that the amount of cyber-attacks targeting businesses has increased by more than half in the second quarter of 2017, accordi...Read more >
20 Jul 2017
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