When they need assistance with their VAT returns Stoke Newington residents know they can count on us. The trouble with any kind of tax is that it’s constantly changing. This can make it hard for everyone to keep up. Luckily, we’re here to offer you an efficient and cost effective service.
There is a scheme out there known as the Cash Accounting VAT Scheme. This is a system of reporting VAT. Here, you record VAT based on payments received or made. It follows the principles of cash accounting. As a result, when you gain income it’s recorded. As for expenses, they’re recorded at the time you pay them. This is very efficient.
You don’t have to let HMRC know that you’re using the scheme formally. Despite this, there are still rules you must adhere to when you begin using it. The following are actions you should and shouldn’t be taking when utilising the scheme.
You should retain your VAT records. They’ll support all of your VAT returns by showing things like receipts and payments. It’s also wise to keep any cash expense claims up to date. Think about employing cloud accounting software as well. QuickBooks and similar platforms can aid you in managing your VAT. The software is capable of picking up your receipts and payments automatically for VAT purposes.
What should I avoid doing?
What you shouldn’t be doing however is moving between the cash accounting standard VAT scheme every quarter. Select one and commit yourself to it. Additionally, avoid extending your customer payment terms to more than six months. People often try this in an attempt to bypass the rules. However, you must pay VAT on these invoices to HMRC.
At Brian G Lonis & Co, we provide a number of other services in addition to help with the VAT returns Stoke Newington clients have to complete. These include VAT planning and administration advice, and use of the most suitable scheme.
If you require any of our services, be sure to get in touch with us.