Different accounting software packages treat their VAT codes and rates in different ways. This quick guide should point you in the right direction so that you know which rate to use in which situation: Xero No VAT – These transactions will not appear on your VAT...
You should talk to an accountant urgently! If at any point during a 12 month period, (good to review this monthly) your turnover exceeds the VAT threshold of £85,000, you must register within 30 days from the end of the month in which you went over the limit. If the...
As a VAT registered IT consultant, I invoice an Agency for my time and I occasionally recharge expenses for travel and accommodation. My Agency refuses to pay the VAT on these recharged expenses – saying they are a ‘disbursement’ and VAT shouldn’t be applied. I’m out...
Charging VAT or not depends on various things: Are you invoicing for goods or for services? Where is your customer based? UK, EU, outside the EU? Is your customer a business or a consumer? The answers will dictate whether your sale is: Standard rated (i.e. 20% VAT...
There are generally two reasons to register for VAT: Compulsory: When your sales exceed £85,000 in a 12 month period. Voluntary: If registering your business for VAT will be a benefit to you (the benefit is that you can reclaim VAT paid on supplies and expenses). If...
VAT advice for small businesses – when your turnover reaches £85,000 in any rolling 12 month period, you must register for VAT. Unfortunately, this means that one sixth, or about £14,000 of your turnover will have to be paid to HMRC but there are 3 possible ways to...
