VAT Accounting

VAT Accounting Services

Understanding VAT (Value Added Tax) can be tricky with ever-changing regulations. At Alyf, we simplify VAT for you, ensuring compliance without breaking the bank. Our expert team is here to guide you through your VAT returns and keep your accounts in check.

What is VAT?

VAT is a tax added to the sale price of goods and services from VAT-registered businesses. It’s a way for the government to generate revenue while spreading the tax burden. As a VAT-registered business, you can reclaim VAT on your business expenses when you file your VAT return.

What Are VAT Returns?

VAT returns are essential for keeping your business compliant. They inform HMRC about the VAT you’ve charged on sales and the VAT you’ve paid on purchases. Typically, you need to submit these returns every three months.

Who Needs to Pay VAT?

Businesses with a taxable turnover over £85,000 (£90,000 from April 1, 2024) in a 12-month period must register for VAT, including both Limited Companies and Sole Traders.

We Can Help You Find the Right VAT Scheme

Choosing the right VAT scheme can benefit your business:

• Standard VAT Scheme: Traditional method where you pay the difference between VAT on sales and VAT on purchases.
• VAT Flat Rate Scheme: Simplifies VAT accounting for businesses with an annual turnover under £150,000. You may pay a lower rate depending on your business type.
• Annual Accounting Scheme: Helps manage cash flow with advance VAT payments based on estimated annual turnover.

Why Do I Need a VAT Accountant?

Handling VAT can be complex, with exemptions and specific rules. Our experienced team ensures you maximise VAT benefits and avoid overpayment. We handle all VAT-related tasks and keep your business compliant with regulations.

Are You VAT Registered?

If not, registering is straightforward with our help. You’ll need to provide business details like your name, industry, and registration numbers. Once registered, you’ll get a unique VAT Registration Number for your tax dealings.

FAQs

• What is Making Tax Digital for VAT?
  Making Tax Digital (MTD) is a government initiative to digitize the tax system. VAT-registered businesses must keep digital records and submit returns online. We can integrate your accounting software with MTD requirements.
• What is the VAT Return Deadline?
  VAT returns and payments are due one month and seven days after your accounting period ends. We’ll keep you organized and ensure timely submissions.
• How Do I Calculate VAT Liability?
  Calculate VAT liability by finding the difference between VAT charged on sales and VAT paid on purchases. Accurate records simplify this process, and we can help manage this efficiently.