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VAT - Value Added Tax :
VAT is a tax that is normally added to the value of your fees, currently the rate is set at 17.5%. So if the invoice for your services is £2,000 you would add £350 (£2000* 17.5%, making the total invoice £2,250.
You must register for VAT if the annual turnover of the company will exceed £68,000 (2009/10) - although we would recommend you register, even if your turnover will not reach the threshold. An additional benefit is the VAT Flat Rate Scheme - this is a scheme to simplify the operation of VAT and, in most cases will save you money. The typical annual savings are in the region of £1,500 to £2,500 per annum. To join the scheme, your turnover should not exceed £150,000 per annum.
Tawanda EU offers this registration service free of charge to all new clients.
There are several VAT responsibilities you have as a director, the main ones being;
- Complete a VAT return every 3 months - the blank VAT return is usually issued 6 weeks before it is due
- The return is due at the end of the month, following the retun period. So if the return is up to 31st December, the return date is due by 31st January.
- Pay any VAT due at the same time as the VAT return, so you have at least 4 weeks after the return period to make the payment
It is important the you get this right from the start; there are various penalties that can be incurred for not getting it right. Tawanda EU are happy to take care of all this for you.
Tawanda EU Ltd Accountants
24, Milner Road, Gillingham,
Kent ME7 1RB,
UK
Phone + 44 787 296 2016
Email info  tawanda.co.uk
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