VAT reverse charge for building and construction services

On 1st March 2021, the VAT reverse charge for building and construction services comes into effect for VAT registered businesses in the Construction Industry Scheme. In a nutshell, from 1st March 2021, the reverse charge means that a subcontractor in the CIS scheme...

VAT codes to use when bookkeeping in Xero

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...

How to delay being VAT registered

VAT registration is a problem for small businesses who sell to the general public.  When annual turnover exceeds £85,000, they must register for VAT and pay 1/6th of gross sales to HMRC.  However, you can avoid/delay registration: Restrict annual turnover to less than...

How to complete a VAT return – the basics.

To complete a basic VAT Return use notice 700/12 online. For ordinary UK sales/purchases, complete boxes: 1) Output VAT, that is VAT on your sales, and for claiming VAT on fuel on cars in the business, apply what’s called a VAT fuel scale charge. 3) Total of...

Reasons to delay registering with HMRC for VAT

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...