VAT services

VAT is one of the most risky and complicated areas of tax – and it’s one of the services we get asked about most frequently.

Understanding your VAT status, how the process works, and your options can be complex and confusing. And, as with most things tax-related, you’ll want to avoid the stress and uncertainty that comes with making a mistake. That’s why it’s generally best left to the experts.

What is VAT?

Value Added Tax (VAT) is a tax that gets added to the cost of your product or service. If you’re VAT registered, you’ll collect this tax at the point of transaction and pass it on to the government through your periodic VAT Returns.

In return for collecting tax on its behalf, generally, you can claim back any VAT that you’ve paid to suppliers and deduct that from the amount you hand to them. This is the standard VAT scheme (though there are many schemes!).

Our VAT services

Not all businesses have to pay VAT, but some choose to register voluntarily.

Whichever camp you fall into, being part of the VAT process requires meticulous bookkeeping and at least one more tax return per year (but usually four, because it’s usually processed quarterly).

It’s also important not to confuse VAT with your own income. It should be kept separate, ready for you to pay as part of your return, including a detailed list of your VAT-able income vs your VAT-able spend.

For these reasons, the admin involved in the VAT process is time-consuming, confusing and can feel like a chore. But, by letting experts like Cottons manage your bookkeeping and cashflow on your behalf, the whole thing can become pain-free: meaning you’ll only have the benefit of any VAT you’ve claimed back to think about.

Suppose you’re not sure whether you should be VAT registered or not. In that case, we can advise – helping with bookkeeping, producing your returns, and looking at specific and more complex issues like partial exemption or the Transfer of an entire Business.

If you’re ready to take the next step please get in touch.