VAT Specialist VAT Accountants for Businesses
VAT Accountants for Businesses
Pearl makes sure you pay the right amount of tax in compliance with HMRC’s Real Time Reporting requirements, and ensures you never miss a deadline.
Specialists in VAT assistance
Pearl are Chartered Accountants specialising in helping small-to-medium sized businesses, contractors, landlords, and sole traders.
We’ll help you choose the right VAT scheme, and make sure you understand and comply with VAT laws and regulations.
Paying VAT – the different methods
There are different methods of paying tax, and Pearl will help you choose the right one for your business.
The different tax schemes are:
Standard VAT accounting
With standard VAT accounting you’ll reclaim VAT that you may have had to pay on your purchases. You’ll pay or reclaim the net of the VAT that you have charged your customers and the VAT that you have had to pay on your purchases.
Your VAT calculations are based on invoices raised, rather than when the invoices are paid.
Impact on cashflow – standard VAT accounting
This could either be good or bad for cashflow, depending on the circumstances. It’s bad when you have to pay VAT even when you aren’t paid for goods or services sold, but good when you can still reclaim for VAT on invoices received even if you haven’t yet paid.
Flat Rate VAT Scheme
Instead of calculating VAT on each and every transaction, you’ll pay a flat rate percentage of your turnover.
This can be good for small businesses because it makes it much quicker and simpler to account for VAT.
However, its advantage of having a rate lower than standard VAT is offset by an inability to reclaim VAT on purchases.
Cash VAT Accounting
Unlike Standard VAT accounting, Cash VAT accounting only takes into account VAT money actually paid or received, rather than just invoiced.
Since you won’t have to pay VAT on any goods or services that the customer hasn’t paid for, it is good for your business’s cashflow.
VAT accounting methods – pros and cons
Pearl will help you weigh up the pros and cons of each VAT payment method and help you choose the right one for your business.
What is VAT MOSS?
The Value Added Tax (VAT) Mini One Stop Shop (MOSS) is one of a kind scheme offered by HMRC. They are the United Kingdom’s tax payments and customs related authority. VAT MOSS lets all sized businesses that supply communication-related, broadcasting or any other digital services to consumers in the European Union who aren’t paying tax- in countries where they do not have an establishment- to account for the VAT due on those goods and services through the internet.
The charges are based on the residence of the consumer- where they live- regardless of whether the supplier is found in the EU or outside. If MOSS did not exist, businesses who are selling these services would have to register for VAT, make returns and payments in each customer’s individual country. However, with the help of MOSS, the process has become much more straightforward as it costs less and is now much easier for businesses to file for their VAT.
How Can We Help You?
All of us at Pearl Accountants are here to guide you for all your VAT MOSS related needs. Pearl helps you in making sure that your business is paying the right amount of tax in conformity with HRMC’s Real-Time Reporting necessities. We also help to make sure you never miss a deadline and are provided with specialist skills and advise.
Pearl are Chartered Accountants concentrating in helping a range of various sized companies from small to medium-sized, contractors, landlords, and sole traders.
We are here to guide you in deciding the most suitable VAT scheme, and we ensure that you fully understand and are following all VAT laws and protocols.
Is MOSS Applicable for Your Business?
Do Any of these questions apply to you:
- Do you source digital services ‒ broadcasting, telecommunications, or e-Services ‒ where the service is mechanical? Some examples of these services include:video on demand, the supply of websites, downloaded apps, music downloads, gaming, e-books, databases, anti-virus, software, online auctions, distant teaching, or web-hosting.
- Do you charge a price for these facilities?
- Do you have clientele in other European Union Member states?
- Are any of your EU customers not VAT registered businesses?
- Do you sell your e-Services only through your own website?
- If you answered YES to all of these questions, then VAT MOSS is relevant for your business.
How to Pay Your VAT MOSS?
There exist various methods to pay for the VAT MOSS. Worried about which one you should go for? Don’t worry at all! We have you covered. We assist you and your business in deciding which VAT scheme you should go for!
1. Standard VAT Accounting
In this scheme, your VAT calculations are built upon the invoices raised, rather than when the invoices are paid. With the standard VAT accounting, you can get back the VAT that you may have had to pay on your acquisitions. You will get to retrieve the net of the VAT that your customers are paying and the VAT you have spent on your purchases.