VAT: The application of a 20% tax on your sales invoices..

It is compulsory for a company to register for VAT if their sales have exceeded £83,000 in the last 12 months, or if you expect to increase this threshold in the next 30 days.

Contractors have a choice of using standard VAT reporting or a simplified Flat Rate Scheme (FRS) reporting option, if they qualify. New contractors can voluntarily register for VAT and report using the Flat Rate Scheme (FRS) – this is particularly beneficial if you are not expecting to exceed the £85,000 threshold, as it allows a reduction of 1% on the FRS rate to apply in the first year of trading.

HMRC have very strict penalty regimes and will apply a percentage of the ‘potential lost revenue’ for failing to register for VAT if required to do so. This can range from 30% to 100% in cases of deliberate and concealed failure to notify.

How we can help?
We will help you set up an invoice template in Freeagent, so you easily charge VAT.
Once a quarter we will calculate your VAT liability.
You will need to pay the advised VAT liability to HMRC.

We bring together the technical expertise of a large firm with the feel of a smaller organisation that really cares about your business.

Dedicated Accountants at Dhikr Accountants

You will always have direct access to your accountant Imran, no more call centres!

Dedicated Accountant

Online Portal

Real time information available through FreeAgent’s online portal.

Online Portal

Keeping you up to date at Dhikr Accountants

No one likes a nasty surprise, which is why we like to stay in regular touch.

Keeping You Up To Date