At Key Personnel we have qualified and experienced staff ready and willing to take the weight of your VAT returns.

Most SMEs don't usually have the time or the know-how to organise their VAT returns, due to the amount and complexity of the paperwork involved.

What is VAT?

VAT is a tax on consumer expenditure. It is collected on business transactions, imports and acquisitions.

Most business transactions involve supplies of goods or services. VAT is payable if they are:

  • Supplies made in the United Kingdom (UK) or the Isle of Man.
  • By a taxable person.
  • In the course of a business.
  • Are not specifically exempted or zero-rated.

What are the VAT rates?

There are three rates of VAT:

  • A standard rate, currently 17.5%.
  • A reduced rate, currently 5%.
  • A zero rate.

Do these rates apply to all goods and services?

No. Some supplies are exempt from VAT, which means that no VAT is payable. Also supplies are outside the scope of VAT if they are:

  • Made outside the UK and Isle of Man.
  • Not made in the course of business.

When must I register and start charging VAT?

The supply of any goods and services, which are subject to VAT at any rate are called taxable supplies whether you are VAT registered or not.

What happens after I've registered?

You need to charge VAT on all your taxable supplies from your date of registration and keep:

  • A record of all standard-rated goods and services you supply or receive as part of your business.
  • A separate record of any exempt supplies you make.
  • A VAT account.

At preset intervals you need to fill in a VAT return with details of your sales and purchases. If the VAT on your sales is more than the VAT on your purchases you pay us the difference. On the other hand, if the VAT on your purchases is more than the VAT on your sales you can claim the difference from us.

The flat rate scheme for small businesses simplifies VAT accounting procedures to save you time and money.

Contact our Financial Director Mandy Hallam on 0115 9853190 or send her an email: mandyh@key-personnel.co.uk