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VAT is one of those areas of tax that sounds straightforward until you're in the middle of it. The rules have been added to and amended over many years, there are a number of genuine grey areas, and the consequences of getting things wrong - whether that's overclaiming, underdeclaring, or simply missing a deadline - can be costly and time-consuming to unpick.
At Facts & Figures, we work with businesses across Edinburgh, Glasgow, and Scotland on VAT compliance and advice - handling as much or as little of the process as you need us to.
What we can help with
Every business has a different starting point when it comes to VAT. Some clients want us to handle everything from end to end. Others are confident with their own bookkeeping but want a second pair of eyes before they submit. Others still only need us when something unusual comes up. We work with all of those arrangements - and anything in between.
Our VAT services include:
Full VAT processing and returns - we handle your bookkeeping, prepare your VAT return, and submit it to HMRC on your behalf
Review and submission - if you process your own transactions, we review your figures and make the submission once we're satisfied everything is correct
VAT registration - advising on whether and when to register, and managing the registration process with HMRC
VAT scheme advice - helping you understand whether the standard VAT scheme, flat rate scheme, cash accounting scheme, or annual accounting scheme is most appropriate for your business
Complex VAT queries - if you come across a situation you're not sure how to handle, we're on hand to work through it with you
VAT investigations - if HMRC opens a VAT enquiry or requests a VAT inspection, we manage the process on your behalf
Making Tax Digital for VAT
Since April 2022, all VAT-registered businesses have been required to keep digital VAT records and submit returns using Making Tax Digital compatible software. If you're already using cloud accounting software like Xero, QuickBooks, or Sage, you're likely already compliant. If you're still using spreadsheets or manual records, this needs to be addressed - HMRC can issue penalties for non-compliance with the digital record-keeping requirement separately from any filing penalties.
We help businesses across Scotland get MTD-compliant and stay that way, with Xero being our preferred platform for most clients.
The grey areas
VAT isn't always black and white. Some of the areas we most commonly help businesses navigate include:
Partial exemption - where a business makes both VAT-able and exempt supplies and needs to apportion its input VAT correctly
Construction and property - one of the most complex areas of VAT, with different rates applying depending on the nature of the work and the property
International transactions - the VAT treatment of services bought from or sold to businesses outside the UK
Mixed supplies - where a single transaction includes elements taxed at different rates
If you've come across a situation you're not sure how to handle, the safest approach is always to check before you submit rather than after.
Do I need to register for VAT?
You must register for VAT when your taxable turnover exceeds £90,000 in a rolling 12-month period. You have 30 days from the point you exceed the threshold to register - missing this deadline can result in a penalty based on the VAT that should have been collected in the interim.
Voluntary registration below the threshold is worth considering if most of your customers are VAT-registered businesses, or if you incur significant VAT on your purchases that you could be reclaiming. We can help you work out whether voluntary registration makes sense for your business.
Thinking of switching accountant?
If your accounts are currently prepared by someone you rarely hear from, or you are not confident everything is being handled as thoroughly as it should be, switching is simpler than most people expect. Find out how moving to Facts & Figures works.
The Flat Rate Scheme can save you time and money
Read More