VAT
Value Added Tax is a sales tax added (currently at 20%) to a variety of goods at the point of sale.
Not all good are liable for VAT (such as postage stamps and public transport) and some are liable for a lower rate such as domestic electricity.
If you are VAT registered, you must charge VAT on your sales and you are responsible for collecting this to be paid over to HMRC. Each quarter you must then file a VAT return to HMRC, declaring your sales and paying the VAT on this to the HMRC.
There are severe penalties for late or inaccurate filings, as well as falsely declaring sales.
Not all good are liable for VAT (such as postage stamps and public transport) and some are liable for a lower rate such as domestic electricity.
If you are VAT registered, you must charge VAT on your sales and you are responsible for collecting this to be paid over to HMRC. Each quarter you must then file a VAT return to HMRC, declaring your sales and paying the VAT on this to the HMRC.
There are severe penalties for late or inaccurate filings, as well as falsely declaring sales.
So what is ‘VAT’?
Call us today for a free discussion on how we can help to make your company more efficient.
Should you be registered?
A less risky and better way?
Here at KeyAccountants we have a proven process and dedicated competent staff. As part of our Continual Improvement policy we keep up to date (and ahead of..) the changes to tax, UK payroll and HMRC requirements.
So why take the risk….?
If your turnover is above the VAT registration threshold you must register for VAT and there are penalties for late registration.
If your turnover is below the VAT registration threshold, you have a choice to voluntarily register for VAT. Depending upon the type of trading that you do, the type of customers you deal with and the expenses you incur, there is an analysis to be performed to decided if it is efficient to be VAT registered or not. In some cases it actually saves your business money to become VAT registered.
If your turnover is below the VAT registration threshold, you have a choice to voluntarily register for VAT. Depending upon the type of trading that you do, the type of customers you deal with and the expenses you incur, there is an analysis to be performed to decided if it is efficient to be VAT registered or not. In some cases it actually saves your business money to become VAT registered.
Key Accountants is a trading name of Key Accountants Midlands Ltd. Registered in England & Wales - Registration No: 06528627
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© 2026 KeyAccountants
Key Accountants is a trading name of Key Accountants Midlands Ltd. Registered in England & Wales - Registration No: 06528627
