Value-Added Tax (VAT) can be complex, but understanding it is essential for many small businesses. In the UK, businesses with annual taxable turnover exceeding £90,000 are required to register for VAT. Once registered, businesses must collect VAT on their sales and can claim back VAT on eligible purchases. This can impact pricing, so it’s essential to understand the implications of VAT registration.
One key benefit of VAT registration is the ability to reclaim VAT on business purchases, which can offset the cost of supplies and materials. However, managing VAT returns and understanding input versus output VAT requires careful record-keeping and attention to detail. Mershaw Accounting can support you in setting up VAT processes to ensure compliance and minimize errors.
For businesses below the VAT threshold, voluntary registration may still be beneficial. If most clients are VAT-registered, claiming back input VAT can improve cash flow. Mershaw Accounting can assess your situation to determine whether voluntary registration is suitable and help implement VAT-compliant practices if you decide to register.
Our team offers tailored VAT services for small businesses, from initial registration to managing ongoing returns. Let Mershaw Accounting help you navigate VAT with confidence and keep your business compliant.
Disclaimer: This article is for general informational purposes only. Please formally engage Mershaw Accounting for personalized VAT advice