VAT Bookkeeper London
VAT Bookkeeper London – VAT ( Value Added Tax ) is a very complex subject. PBS will help you and advise on the different aspects. We can act as your bookkeepers and complete the Vat accurately . Our friendly professional bookkeepers have been doing it for many years and keep updated with the latest legislation. Please call us.
Call us at 020 7788 7744 for a free consultation.
£350/for a day
VAT Bookkeeper London What is VAT ?
VAT is levied on the sale of goods and services in the UK . It is a type of consumption tax because it is charged on items that people buy and is also an indirect tax because it is collected
by businesses on behalf of the Government.
The standard rate of tax in the UK is currently 20% which is the rate charged on most purchases. However, there are another 2 Vat rates. There is a reduced rate of 5%
charged on certain items such as sanitary products, children’s car seats etc. There is also a zero rate and as the name suggests charged at 0 %. This applies to
most food, books, children’s clothes etc. HMRC have published a whole booklet with all the different categories.
Biggest change in VAT in decades !
Making Tax Digital has just been introduced and applies from 1st April 2019. This means now all businesses have to by law submit their VAT returns digitally via MTD ready
software. Up to now, submitting VAT returns meant logging onto HMRC website and completing VAT online by inserting the numbers in the relevant boxes.
MTD means submitting the VAT return via your software directly. HMRC have already contacted all businesses to register on time and be ready for the new change.
Who pays VAT ?
Businesses with a turnover of more than £85,000 must register to pay and charge VAT on the goods and services they buy an sell. Other businesses can choose to register for VAT
voluntarily. Businesses will charge their customers VAT, so collecting on behalf of the Government. When it is time to file the VAT return, usually quarterly, will calculate
the Output VAT on the sales made less the Input VAT on purchases made and pay the difference over to HMRC.
There are certain deadlines to keep to otherwise clients will receive penalties for late returns.
When a business has an annual turnover of more than £85,000.
There are 3 rates
Standard rate at 20%
Reduced rate at 5%
Zero rate at 0%
VAT was introduced back in 1973 , replacing the Purchase Tax
No , back in 1973 it was 10%
1991 to 2008 was 17.5% , reduced to 15% between 2008-2009
2009-2011 back to 17.5%
2011 to present 20%