VAT: Value Added Tax
VAT (Value Added Tax) is a tax that is applied to most goods and services in the UK.
Navigating VAT compliance can be a challenging and time-consuming task for businesses, often adding significant administrative burdens. Ensuring that your VAT returns are completed accurately and in a timely manner is essential to avoid potential issues and penalties.
By staying compliant with VAT regulations, you can minimise the complexities involved and free up valuable time and resources to focus on your core business activities. Let us help you manage this crucial aspect of your operations, so you can relieve the stress and concentrate on what you do best.
Businesses in the UK must register for VAT if their VAT taxable turnover exceeds the threshold (currently £90,000 per year as of 2024). Businesses can also register voluntarily if their turnover is below this threshold.
Our range of services includes:
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Comprehensive support for both compulsory and voluntary VAT registration, ensuring that your business is properly set up from the start.
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Assistance with the VAT deregistration process, helping you smoothly transition out of VAT obligations when necessary.
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Expert guidance in selecting the most appropriate VAT scheme tailored to your business needs, whether it be annual accounting, flat rate, or cash accounting schemes.
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Thorough VAT control and reconciliation services to maintain accurate and compliant financial records.
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Professional advice on dealing with zero-rated and exempt supplies, ensuring you understand and apply the correct VAT treatment.
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Specialised consultancy on VAT implications related to property transactions, helping you navigate the complexities of real estate VAT.
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Dedicated support in managing your VAT-related bookkeeping, aimed at minimising potential issues and ensuring future compliance.
Important Update on VAT Late Submission Penalties
Starting from 1 January 2023, new penalties will apply if you submit your VAT Return late, replacing the previous VAT default surcharge system.
Key Points:
Points-Based Penalties: Late submissions will earn you penalty points. If you reach the threshold for your accounting period, you'll receive a £200 penalty. Further late submissions while at the threshold will incur additional £200 penalties.
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Thresholds by Accounting Period:
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Annual Returns: 2 points
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Quarterly Returns: 4 points
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Monthly Returns: 5 points
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Example for Quarterly Returns: A business that submits quarterly returns will receive a £200 penalty after accumulating 4 points for late submissions.
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Non-Standard Accounting Periods: Different rules apply if your business uses a non-standard accounting period (e.g., over 20 weeks).
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Changing Your Accounting Period: If you change your submission frequency, HMRC will adjust your penalty points accordingly.
Summary of late payment penalties
You’ll get a first late payment penalty if your payment is 16 or more days overdue.
When your payment is 31 or more days overdue, your first late payment penalty increases, and you get a second late payment penalty.
UK Payroll Services
Managing payroll can be time-consuming and complex, but it’s an essential part of running any business. At FTI, we offer comprehensive, reliable, and fully compliant UK payroll services tailored to businesses of all sizes.
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Accurate Payroll Processing: We ensure that your employees are paid correctly and on time, every time.
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PAYE & National Insurance Calculations: We'll manage your PAYE obligations, calculating tax and National Insurance contributions with precision.
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Real Time Information (RTI) Submissions: We handle all HMRC submissions on your behalf, ensuring your business stays compliant.
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Auto-Enrolment Pension Management: Our team can set up and manage workplace pension schemes, ensuring you meet the government’s auto-enrolment requirements.
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Payslip Generation: Digital and paper payslips are provided to your employees in a secure and timely manner.
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Year-End Compliance: We manage all year-end payroll tasks, including issuing P60s and submitting final year-end returns to HMRC.
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Employee Management: New hires, leavers, and statutory payments such as SSP and SMP are all taken care of with ease.
Our Payroll Services Include:
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Expertise: Our payroll specialists have in-depth knowledge of UK payroll legislation, ensuring full compliance.
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Cost-Effective: Outsourcing payroll saves you time, reduces administrative overheads, and eliminates the need for in-house payroll software.
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Dedicated Support: We provide a personal service, working closely with you to handle any queries or changes that arise.