VAT

In the dynamic landscape of taxation, understanding Value Added Tax (VAT) schemes is crucial for businesses operating in the United Kingdom. VAT schemes offer various options tailored to different business needs, helping them manage their VAT obligations efficiently while potentially saving time and money. In this blog post, we will delve into the intricacies of UK VAT schemes and rates. What is VAT? Value Added Tax (VAT) is a consumption tax levied on goods and services at each stage of production or distribution. It is ultimately borne by the end consumer, making it an indirect tax. VAT is a significant source of revenue for the UK government, and businesses are required to register for VAT if their taxable turnover exceeds the threshold set by HM Revenue & Customs (HMRC). When to register? The VAT registration threshold determines whether a business needs to register for VAT, and the current VAT registration limit in the UK is £90,000. What are Schemes? # Standard VAT Scheme: # Flat Rate Scheme: # Annual Accounting Scheme: # Cash Accounting Scheme: # VAT Margin Scheme: What are the rates? There’s also a category of exempt goods and services where VAT doesn’t apply at all, such as postage stamps and financial transactions. For more, refer HMRC site. What are the deadlines? Generally, VAT returns and payments are typically due one calendar month and seven days after the end of the VAT return period. For example, if the VAT return period ends on March 31st, the deadline for filing and payment would be May 7th. If a business is on the Annual Accounting Scheme, the deadline for filing the annual VAT return and making any payment due is two calendar months and seven days after the end of the accounting year. Let’s connect with the team at Apex KPO and discuss how outsourcing will benefit your practices or you can email us at info@apexkpo.com. Do you have any questions? Speak with the expert team at APEX Book Free Consultation