Like it or loath it, Value Added Tax is something we all have to live and deal with. Contrary to common perception however, it’s not actually a sales tax, in that VAT is applied only to the difference between the price paid by the seller and that sellers re-sale price, so although you pay the full amount of the tax on all purchases you get a refund on the difference in tax between buying and selling.
Here’s the point though, paying VAT and then having to reclaim it can make a real nonsense of your cash flow, but did you know you can choose how and when to pay your VAT? You can choose to pay using the Cash Accounting Scheme in preference to the Standard scheme, allowing you to account for the VAT on your sales on the basis of payments you receive, rather than on tax invoices you issue.
Ok so far? And just so you know, if you choose to use the scheme, you can only reclaim the VAT incurred on your purchases once you paid your supplier.
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You can trust us to look after you and your VAT. We’ll advise you as to whether Cash Accounting is a good idea for you and well make sure your VAT returns are submitted correctly and on time. What more could you want?
If the thought of VAT gives you a headache, why not get in touch? You can ring us on 0117 971 7373 or contact us by email and we’ll get back to you.