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Company Tax

Taxes on goods and services—excise duties, stamp duties, and, most importantly, VAT—raise nearly 30% of tax revenue in the UK and are important parts of all modern tax systems. VAT especially has become an increasingly important part of the tax system in the UK and elsewhere. Over 150 countries worldwide, employ VAT systems. It is said that VAT is unquestionably the most successful fiscal innovation of the last half-century, perhaps the most economically efficient way in which countries can raise significant tax revenues. In the UK many businesses by law are required to register for VAT (Value Added Tax) provided they sell taxable supplies and their sales (turnover) crosses a statuatory (legal) threshold. Businesses can also register for VAT voluntarily but there are some conditions that apply:

  • Voluntary VAT registeration will be of benefit if you find that your business is buying alot of goods that have VAT included in the price.
  • It should not affect trade, if your customers are registered for VAT they will not care what the gross price is they will only look at the price net of VAT and will claim back the VAT element.

If none of the conditions above apply then its better not to register for VAT.

A caveat is NOT to add VAT to your sales until you have registerted as it is a criminal offence and also do not delay registering for VAT if you meet the criteria as otherwise you will be penalised for not registering on time.If you have any queries in this regard please dont hesitate to contact us.We have a professional team with immense experience in this field and therefore will guide you the right path.

HMRC has introduced various VAT schemes so that you can use whichever scheme suits your business.The schemes are Flat rate scheme, Cash Accounting and Annual Accounting schemes. Do not worry, we will help you out in this regard and will advise you on which scheme to go with. Please contact our office based in Edgbaston Birmingham or give us a call on 0121 455 6644 and we will take all your hassle away.