What is Stamp Duty?

Stamp Duty Land Tax, to give its official title, must be paid if property or land is purchased over a certain value. A different tax called Land and Buildings Transaction tax applies in Scotland. Stamp Duty is paid when you buy or are transferred, freehold or leasehold property. For a freehold property: Nothing is paid […]

What is Capital Gains Tax?

It is the tax charged when you sell or dispose of an asset that has made a profit. There are certain assets that are tax free – e.g. your car or your main home. You only have to pay tax if the ‘gain’ is above your annual allowance, which from April 2017 is £11,300. You […]

Do I have to include VAT information on my website?

Yes, it is a requirement of the Electronic Commerce Directive Regulations 2002.

How do I find out my VAT office?

The easiest way is to contact HMRC. You can do this using information on the following link:

What is a VAT return?

A VAT return is a report sent to HMRC which summarises VAT on sales and VAT on purchases for your business for a given period (usually a quarter). You will either need to make a payment to them or receive a refund.

How do I complete a VAT return?

A standard VAT return adds up all the VAT on sales (output tax) and all the VAT on purchases (input tax) for a given period, usually a quarter. An easy way to do this is by using bookkeeping/accounts software that automatically summarises the relevant information on a report for direct submission to HMRC.

When would I be exempt from VAT?

If all your sales are exempt, then you won’t be able to register for VAT. Partial Exemption is possible, whereby a business provides both exempt and taxable supplies. The Partial Exemption method is applied to any input tax to work out how much can be reclaimed.

What does a VAT number look like?

A standard VAT number has the country code, ‘GB’, followed by a 9 digit number in blocks: 3 digits, 4 digits and 2 digits.

What is the VAT Flat Rate Scheme?

You can only adopt the Flat Rate Scheme if your turnover is £150,000 or less. You just pay a flat percentage rate on your gross turnover. It can be combined with the Annual Accounting scheme with just one return per annum. This scheme simplifies the record keeping of sales and purchases within the business. The […]

What is the Cash Accounting VAT scheme?

You can only adopt the Cash Accounting Scheme if your turnover is £1.35m or less. You only put transactions on your VAT return if you have been paid by the customer or you have paid the supplier. This may help cash flow if you have late paying customers.