Sources for statistics on accountancy firms by fee income, published as part of the Knowledge guide to statistics on the accountancy profession.
Features and articles
Brexit and every element of your associated strategy, will impact upon the finances of your business. Depending on the outcome of the UK’s future relationship with the EU there are likely to be customs, VAT and currency implications which will put an enhanced focus on cash flow due to the potential for extra administration and costs of doing business.
VAT-registered businesses must keep records of sales and purchases, keep a separate summary of VAT called a VAT account and issue correct VAT invoices.
You must register your business for VAT with HM Revenue and Customs (HMRC) if its VAT taxable turnover is more than £85,000.
If you sell goods you must calculate how much VAT to record in your VAT account. For goods sold inclusive of VAT, you must deduct the VAT you have to record. For goods sold exclusive of VAT, you must add it. VAT retail schemes can make calculating your VAT simpler. Instead of calculating the VAT for each sale you make, you do it once with each VAT return.
VAT margin schemes tax the difference between what you paid for an item and what you sold it for, rather than the full selling price. You pay VAT at 16.67% (one-sixth) on the difference.
Usually, VAT-registered businesses submit their VAT Returns and payments to HM Revenue and Customs 4 times a year. With the Annual Accounting Scheme you make advance VAT payments towards your VAT bill - based on your last return (or estimated if you’re new to VAT), and submit 1 VAT Return a year.
With the Cash Accounting Scheme you pay VAT on your sales when your customers pay you, and reclaim VAT on your purchases when you have paid your supplier.
Webinars and recordings
This webinar considers a variety of issues which may require SME businesses to take action in readiness for chnages in 2019.
Neil Warren guides us through the labyrinth of VAT changes over the past year. Broadcast on 24 April 2018.
This month the panel discusses MTD for VAT regulations, MTD for income tax now it has moved into public beta, and new changes to UK based agents.
The final regulations for MTD for VAT have been laid before parliament and the legislation is now all in place.
First broadcast on 16th January 2018. HMRC's vision for a digital tax system is well underway. Join the Tax Faculty as they talk through the current state of play and explain what we know so far about the requirements for VAT.
In this webinar, Nigel Mellor and Paul Morton of the Office of Tax Simplification discuss the current VAT Simplification review
Although many of the implications of Brexit are currently unknown, VAT and customs duties are likely to be affected. This guide outlines the potential tax consequences. This guide was updated following the publication on 23 August 2018 of guidance from HMRC as to what will happen if there is no Brexit deal.
In TAXguide 02/18, Sarah Ghaffari answers a selection of the key questions raised by viewers of the Tax Faculty webinar ‘Demystifying Making Tax Digital: the VAT requirements’, broadcast on 16 January 2018. Read a summary here, ICAEW members can download the full guide.
In TAXguide 23/17, Neil Gaskell explains the changes introduced on 1 January 2015 to the VAT rules for business to consumer supplies of digital services within the EU. This guidance has been updated to include changes introduced on 1 January 2019. Read a summary here, Tax Faculty members can download the full guide.
Money laundering: supplementary guidance for the tax practitioner
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This second chapter on VAT explains how the tax is administered by HMRC, as well as a number of schemes which simplify the VAT system.
A chapter setting out the essential principles of VAT, as set out in the Value Added Tax Act 1994 and subsequent Finance Acts.
Short summary of what is chargeable for VAT in the UK, who constitutes a taxable person and how much tax is paid at different rates of VAT.
A high level overview of the framework of VAT administration covering appeals and the interest charged on VAT recovered through the raising of an assessment.
Briefly explains who has an obligation to register for VAT with a worked example for a small business. It also notes the pros and cons of voluntary VAT registration.
An overview of exporting from the UK. The chapter covers VAT treatment of direct and indirect exports, customs and excise, and the different types of export declaration.
This chapter explains the schemes for businesses recovering VAT incurred within the EU.
This chapter outlines the UK VAT rules for the supply of property, including the tests for goods or services, time and value of supply, and supplies which span a change in the VAT rate or liability for tax.
ICAEW's Tax Faculty responds to the VAT registration threshold call for evidence published by HM Treasury on 13 March 2018.
VAT Postponed accounting letter to FST
MTD - Interest harmonisation and sanctions for late payment
VAT and vouchers
Some resources that we link to may pre-date the latest amendments to the relevant tax regulations. While these links contain useful information, please treat them with appropriate caution.
List of companies who are supplying suitable software to support the MTD for VAT pilot. These suppliers have tested their products in HMRC's test environment and have already demonstrated a prototype of their software to HMRC.
Notice giving updated guidance on digital record keeping and return requirements of MTD for VAT. It explains the digital records that businesses must keep, ways to record transactions digitally in certain special circumstances, and what counts as ‘functional compatible software’.
HMRC guidance on the direct tax obligations of charities, VAT and reliefs or exemptions available. Sections cover Gift Aid, Payroll Giving, donating land, buildings, shares or securities, claims, and audits.
Table from KPMG providing data on indirect tax rates around the world with brief accompanying notes. A separate interactive Tax rates tool allows you to compare tax rates by country or region.
Standard and special VAT rates for EU member states. Updated regularly
Useful online tool for checking the validity of EU VAT numbers. The service is provided by the European Commission and uses data supplied by member states.
Extensive collection of HMRC guidance on rates, thresholds, managing VAT and VAT returns. Contains specific guidance for builders, car dealers, importers and tour operators.
Current and historical thresholds for VAT and VAT accounting schemes.
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