VAT (Value Added Tax) is a tax on the value added at each stage of the production and distribution process of goods and services, and is charged on most goods and services that are bought and sold in the UK. Only VAT-registered businesses have to account for VAT and there are strict rules about which businesses must register and when. Once a quarter (occasionally monthly), a business has to file a VAT return summarising the VAT they have charged and VAT they have suffered during a specific period, and pay the balance to HMRC or receive a refund.
A VAT return includes details of the business's VAT-registered sales and purchases, as well as any VAT they have suffered on purchases.
In addition to filing their VAT return, companies must also make sure that they are complying with VAT regulations, such as charging the correct amount of VAT on their sales and keeping accurate records of their VAT transactions.
VAT can be difficult to get right because the rules are so complicated. Many companies work with us to ensure that they are complying with VAT regulations. This can help minimise their VAT liability and ensure that they are meeting their obligations under the law.