VAT
VAT that works for you
VAT made Simple
VAT rules are complex and the implications are often not considered until too late. VAT planning requires in-depth knowledge, and awareness of current legislation. The VAT system is policed by HMRC with heavy penalties for breaches of the legislation. Ensuring that you comply with all the VAT regulations is essential.
Why Smith Hannah
VAT done right
We provide an efficient and cost effective service with dedicated staff to help you consider the full impact of VAT at all stages of your business development. We will help you to plan robustly, minimise your exposure and maximise your cash flow position.
We can assist you in a number of ways, including :
- Tailoring your accounting systems to bring together the VAT information accurately and quickly
- Provide assistance with the completion of VAT returns
- Assist with HMRC VAT reviews and negotiating with them if disagreements arise
- Advising as to whether any of the available schemes may be appropriate to you
Our Values
- Client Focus
Our clients benefit from an integrated approach based on understanding the key issues facing their businesses.
- Integrity
As an established independent firm, we pride ourselves in creating and sustaining supportive relationships . Integrity is a core aspect in everything we partake in.
- Innovation
We aim to tailor our services to meet our clients’ specific needs. We offer innovative solutions to our client’s complex issues.
Frequently Asked Questions
VAT is a consumption tax applied to goods and services. Businesses add VAT to the price of the goods and services they sell, and they can reclaim VAT on the goods and services they purchase from other VAT-registered businesses.
Businesses must register for VAT if their taxable turnover exceeds the VAT registration threshold (currently £90,000). Voluntary registration is also possible for businesses below this threshold.
The main VAT rates in the UK are:
- Standard rate: 20% (applies to most goods and services)
- Reduced rate: 5% (applies to some goods and services like children’s car seats, domestic energy, etc.)
- Zero rate: 0% (applies to items like food, books, and children’s clothing)
- Exempt: No VAT is charged (applies to certain services such as insurance and financial services)
- Out of scope: Transactions not subject to VAT at all (e.g., salaries)
You can register for VAT online via the HMRC website. You’ll need your business details, including your turnover and tax information. If you are registering voluntarily, you’ll need to follow the same process.
A VAT return is a document you submit to HMRC detailing the VAT you’ve charged on sales (output tax) and the VAT you’ve paid on purchases (input tax). VAT returns are usually submitted quarterly or annually, depending on your business’s VAT scheme.
Our Approach: We do all the work for you
Our clients benefit from an integrated approach based on understanding the key issues facing their businesses.
This enables us to meet their needs at each stage of development and allows them to focus on building the value of their business. We have strong skills and resources in the region and our clients’ results prove that.
Why Smith Hannah?
We take care of everything so you don’t have to. As Chartered Certified Accountants, we offer a wide range of business advice and accountancy services tailored to meet your requirements. When you engage us, you can be confident that the work will be carried out by dedicated professionals. We view individual client relationships as our most valuable asset and this philosophy extends to everything that we do. You’ll have one less thing to worry about, which means a happier workforce and better time management for your business.