At UK Tax Advice and Accountancy, we offer comprehensive Value-Added Tax (VAT) services to businesses of all sizes across the UK.
We understand that navigating through the intricacies of VAT regulations can be daunting, and that is why our team of expert tax advisors is here to help. From standard VAT schemes to specialised VAT schemes, we are equipped to guide you through all aspects of VAT, ensuring full compliance and optimal financial planning.
Our VAT Services
VAT Registration
We assist businesses in the VAT registration process, helping them understand when to register and the implications of doing so.
VAT Returns
We can manage your VAT returns on your behalf, ensuring accurate calculations, timely submissions and that you’re claiming back as much VAT as you’re entitled to.
VAT Planning and Administration
We provide advice on the most tax-efficient way to structure your business transactions to reduce VAT liability. We will also help you manage VAT administration tasks.
VAT Control and Reconciliation
Our experts can perform VAT control and reconciliation, helping you avoid potential pitfalls and penalties.
VAT Inspections and Disputes
In the event of a VAT inspection or dispute, we will stand by your side and provide the necessary advice and representation.
Our Expertise in VAT Schemes
Depending on your business type, size and sector, you might benefit from being part of a special VAT scheme. We have vast experience in dealing with all of the major VAT schemes, including:
Flat Rate Scheme
Designed for small businesses with a turnover of £150,000 or less, this scheme simplifies VAT reporting by letting you pay a fixed rate.
Cash Accounting Scheme
This allows businesses to pay VAT on their sales when they are paid by their customers, rather than when an invoice is issued.
Annual Accounting Scheme
This scheme lets businesses make advance VAT payments towards their VAT bill, and submit one VAT return per year.
Retail and VAT Margin Schemes
These are schemes designed for businesses that sell to the public and businesses that deal in second-hand goods, art, antiques, and collectibles.
Property / Real Estate
The VAT that applies to land and property transactions in the UK can be complex due to the variety of rates, exemptions, and options to tax. Below are some common VAT situations related to land and property transactions:
Certain transactions related to land and buildings are subject to the standard VAT rate. This typically includes the sale of commercial property within the first three years of construction, as well as some building work such as conversions, renovations, and the installation of certain mobility aids.
Some land and property transactions can be charged at a reduced VAT rate. This typically applies to certain residential renovations and conversions, energy-saving installations, and the installation of certain mobility aids.
Some transactions are zero-rated, which means no VAT is charged, but you can still reclaim the VAT you’ve paid on related costs. This generally applies to new builds and the construction of new residential properties, the first sale or long lease of those properties, and the conversion of a property into a different number of dwellings.
Some transactions are completely exempt from VAT. This typically includes the sale or lease of existing residential property, the sale of land (subject to certain exceptions), and the lease or sale of commercial property (where it is not a new building and more than three years have passed since completion). However, if a transaction is exempt, you usually can’t reclaim the VAT paid on your costs.
For certain property transactions, such as the leasing or selling of commercial properties, landlords or sellers can choose to ‘opt to tax’. This means charging VAT at the standard rate, even if the transaction would ordinarily be exempt. This can be beneficial in some cases because it allows the landlord or seller to reclaim their input VAT.
- The Capital Goods Scheme (CGS) applies to certain high value capital items such as land, property, and computers. If you have bought, built or significantly altered a property and the VAT on those costs was £250,000 or more, the CGS generally applies.
- The scheme extends over a period of 10 years for land and buildings, and its purpose is to balance the VAT you have claimed based on how you actually use the property over that time period. If the property’s use changes, for example from entirely commercial to partly residential, a CGS adjustment may be required. The result could be that you need to repay some of the VAT you have previously reclaimed, or that you can claim additional VAT.
- In certain circumstances, the sale of a business can be treated as the Transfer of a Going Concern (TOGC), which is generally exempt from VAT. For a TOGC to apply, the business must be sold as a ‘going concern’, which means it’s operating and trading at the point of sale.
- When it comes to property, a TOGC can include the sale of a property rental business, or the sale of a commercial building where the tenant remains in situ. However, if the seller has chosen to ‘opt to tax’, the buyer must also ‘opt to tax’ and notify HMRC before the sale, otherwise the TOGC treatment can’t apply and VAT will be chargeable.
- It is important to note that the rules around TOGCs are complex and specific conditions must be met for the sale to qualify. Detailed professional advice should be sought if you are considering this option.
Why work with us?
At UK Tax Advice and Accountancy, we offer advice on all VAT schemes, helping you select the most suitable scheme for your business. Our goal is to simplify the process of VAT compliance and allow you to focus on what matters most – running your business.