Free Guide To VAT
Understanding and managing VAT can be challenging for many businesses. To help you stay compliant and make informed decisions, we've put together a list of frequently asked questions about VAT. To further assist you, we offer a Free VAT Guide that you can download!
VAT FAQ
Q
What is VAT?
A
VAT is a tax charged on most goods and services provided by VAT-registered businesses.
Q
What Are The VAT Rates?
A
-Standard Rate: 20%
-Reduced Rate: 5% (e.g. on home energy and children’s car seats)
-Zero Rate: 0% (e.g. on most food and children's services)
A
Businesses with a taxable turnover exceeding the VAT threshold (currently £90,000) in a 12-month period.
Q
Who Needs To Register For VAT?
A
You can register online through the HMRC website. You’ll receive a VAT registration certificate with your VAT number.
Q
How Do I Register For VAT?
A
A VAT Return is a form you fill in to tell HMRC how much VAT you have charged and how much VAT you have paid to other businesses. VAT Returns are usually submitted quarterly.
Q
What Is A VAT Return?
A
You can reclaim VAT on business-related goods and services, and partial reclaim is possible if purchases are for both personal and business use.
Q
What Can I Reclaim VAT On?
A
Most businesses submit VAT returns quarterly, but some can choose to submit annually.
Q
How Often Do I Need To Submit a VAT Return?