.VAT For Small Business:
Tip:1
V80 was these attacks on sales the main three classifications and yes there are more standard rated. Whereat the current that rate you charge twenty percent tax on yourselves your income could also be exempt.
This means it’s not included at all or you could charge a lower rate of v81 that’s common is for property developers. Where did they charge naught % VAT for small business on this out the trick is whatever industry you’re in you need to come to check or what classification your income is in relation to being 80 so V80.
VAT For Small Business:
When do I register you register for V eighty when your cumulative sales exceed 85 thousand that’s on a rolling monthly basis so to give an example is from month one to month twelve you turn over 84,000? You would then you’d then take off month one and add on month thirteen to see what the rolling average is options for V80.
There are three main ones the first one is flat rate V 80 this is designed for small businesses to make it easy to prepare your VAT returns your business is classified in a certain era. You have to pay over a fixed percentage depending on what industry you’re in easy to prepare and there’s no argument and no confusion about what you can claim and what your claim really good scheme for a lot of the businesses.
Tip: 2
We work that is above 150 thousand turnovers you’ve got two choices you’re either paying your v80 on an accrual basis. This means invoices so you’ll pay it when you raise sales invoices and also when you receive your purchase invoices from your suppliers.
You will do it on a cash basis the majority of businesses under a meal will be normally on a cash basis because who wants to pay over v80. When they haven’t received it but there are sometimes benefits of being the invoice accountant, he’s always worth assessing your business to see what has the biggest advantage for you VAT for small business returns.
Most small businesses are filed on a quarterly basis now there are some exceptions where they can be monthly and it’s beneficial. But on the whole, it’s quite common for businesses to follow their v80 return quarterly.
So, if you have a 31st of August vat return you will get one month plus seven days to file that return and pay it if there is a liability, we normally say to all of our clients get it done by the end of the month or even better gay done by around the 15th.
Tip:3
You know what fee 80 is payable in the next three weeks happy days rather than waiting hours is there. Any other elements of v80 that you have found difficult please comment below and we’d love to help you VAT forget it VAT to get it.
You’re a glorified tax collector and you’re doing it for free. But it’s a legal requirement so you have to add vat sales get to reclaim 380 from your expenses. Which if you’re not fact registered you want the power to claim. So, that is a definite benefit and then you pay this over liability or refund on a quarterly basis normally.
- Warning VAT
When you do your returns one word of warning VAT is not your money. There are a lot of business owners, especially in small businesses. That, look at their bank account and go like about in here the 80 is not yours.
I think a really good practice if this is a way that your role is sometimes is to on. On a monthly basis, you’ll know. How much v80 you’re putting you’ve collected on your sales put an into a different. The account then that way it gives you some discipline. That, if you are looking at that bank account you are you’ve separated already the v80.
- refund
So, that money is there within your business another trap. My accountant should get my fat liability down to zero or a refund. If you’re a property developer and you’re not percent v80 get it. There should be very much because you’ve charged you not percent on yourselves. You were claiming all your costs or guaranteed. A refund but if you’re charging v80 on all your cells and you were reclaiming.
It on all of your costs then. The sign of your v80 liability would ultimately be a sign of your profit. Making a profit can only ever be a good thing in business. Now, who forget it not all of your cost has v80 to them, yeah one being wages travels another.
- Expenditure codes
I could go through loads of different expenditure codes where your client claimed data on certain costs. That’s just by ease but and it’s not definite. How much v80 you pay over is a sign of how profitable.
You are so sometimes and this is a mindset shift is if you’re paying over more v80 could. That doesn’t mean you’re a lot more successful would you like to pay less tax. There are 71 opportunities to pay less tax in our book our current record for tax saved is over. Three hundred thousand for one company could yours.
