VAT
& Indirect Tax
Whether you are a small business operating in the UK, or a multinational that is expanding into markets beyond the UK shores, VAT or Gross Sales Tax could impact your business in some form or another. Getting expert advice could highlight significant cash flow opportunities or pick up underpayments before they get out of control.
VAT
VAT Registration
A business must register for VAT where the value of its rolling annual taxable turnover exceeds a threshold of £90,000 or if it is expected to exceed the threshold within the following 30 days. There may be advantages to being registered for VAT, and businesses can consider doing this voluntarily if the value of their taxable turnover is below £90,000.
HMRC have launched a tool to help businesses understand the implications of registering for VAT. Click here to read our blog to learn more about how the tool works and its benefits.
Land and Property
Land and property can certainly be one of the most complex areas of VAT and given the high value attributed to such transactions, any errors relating to the VAT can be costly and could also impact any Stamp Duty Land Tax payable by the purchaser.
Accordingly, it is important to seek advice early on in any proposed property sale or purchase to ensure that the transaction is structured correctly and robustly from a VAT perspective and that your position as a seller or purchaser of land is protected should things not go to plan.
Importing and Exporting
For goods imported into the UK from suppliers outside the UK, as a purchaser, you could incur UK VAT on the import at the same rate as if the goods were being bought in the UK. In addition to this, Customs Duty may also be applied to imported goods and the rate at which this is applied will depend on what is being imported. As the amount of duty paid is an absolute cost to the business, it is important that goods are categorised correctly.
When exporting goods to customers located outside the UK, whilst UK VAT is unlikely to be due, there may be an obligation to register for VAT in the country to where the goods are being shipped.
International VAT
For those preparing to carry out business abroad or for businesses already involved in cross-border trading in services, our specialist VAT advisors can support you through any complications that may arise. With more and more countries having their own VAT regimes, it’s crucial that you are meeting your VAT obligations in the most efficient way possible.
HMRC Enquiries
In the unfortunate circumstance that you find yourself in a dispute with HMRC, specialist, professional advice is imperative. Following years of practical experience and a thorough understanding of both the legislation surrounding VAT and how HMRC operate, HB&O’s in-house VAT experts are fully equipped to guide you through the entire investigation process. We appreciate how complex VAT can be, so we make it our priority to explain the rules and regulations step-by-step, in a way that you can easily understand. With your interests at the forefront of everything we do, you can rely on us to achieve the best possible outcome for you and your business.
VAT Health Checks
A VAT health check can offer a detailed review of a business’ internal VAT processes. Such a check might suggest that a different VAT scheme could be more appropriate for your business or could identify areas to improve the accuracy and efficiency of your existing VAT processes. Our tailored approach to health checks is something we pride ourselves on – we take time to thoroughly understand our clients’ businesses, before we get to work.
VAT Schemes
There are a number of VAT schemes which are designed to ensure that your business can carry out its VAT accounting in the most simplified and efficient manner, whilst in some cases, saving money or improving VAT cash flow. Such schemes include:
· Flat Rate Scheme
· Cash Accounting
· Retail Schemes
· Annual Accounting
· Second Hand Margin Scheme
Global VAT Compliance
Remaining VAT compliant becomes increasingly complicated when a business spreads across multiple countries, jurisdictions and tax registrations. Deadlines can be missed, bringing consequences of penalties and interest which can be hugely detrimental to a business’ finances. HB&O’s Indirect Tax department have expert knowledge on global compliance procedures. They provide clients with invaluable support and guidance to ensure you stay on top of your obligations, but also offer insight into how your processes can be streamlined and systems can be improved in order to maximise efficiency.
VAT Administration
A business must register for VAT where the value of its rolling annual taxable turnover exceeds a threshold of £85,000, or if it is expected to exceed the threshold within the following 30 days. A business cannot remain or continue to be registered for VAT where it no longer receives any business income, or if it does, only income which is exempt from VAT is received. There may be advantages to being registered for VAT and businesses can consider doing this voluntarily if the value of its taxable turnover is below £85,000.
Land and Property
Land and property can certainly be one of the most complex areas of VAT and given the high value attributed such transactions any errors relating to the VAT applied, can be costly and could also impact any Stamp Duty Land Tax payable by the purchaser.
Accordingly, it is important to seek advice early on in any proposed property sale or purchase to ensure that the transaction is structured correctly and robustly from a VAT perspective and that your position as a seller or purchaser of land is protected should things not go to plan.
International VAT
For those preparing to carry out business abroad or for businesses already involved in cross-border trading in services, our specialist VAT advisors can support you through any complications that may arise. With more and more countries having their own VAT regimes, it’s crucial that you are meeting your VAT obligations in the most efficient way possible.
HMRC Enquiries
In the unfortunate circumstance that you find yourself in a dispute with HMRC, specialist, professional advice is imperative. Following years of practical experience and a thorough understanding of both the legislation surrounding VAT and how HMRC operate, HB&O’s in-house VAT experts are fully equipped to guide you through the entire investigation process. We appreciate how complex VAT can be, so we make it our priority to explain the rules and regulations step-by-step, in a way that you can easily understand. With your interests at the forefront of everything we do, you can rely on us to achieve the best possible outcome for you and your business.
VAT Health Checks
A VAT health check can offer a detailed review of a business’ internal VAT processes. Such a check might suggest that a different VAT scheme could be more appropriate for your business or could identify areas to improve the accuracy and efficiency of your existing VAT processes. Our tailored approach to health checks is something we pride ourselves on – we take time to thoroughly understand our clients’ businesses, before we get to work.
VAT Schemes
There are a number of VAT schemes which are designed to ensure that your business can carry out its VAT accounting in the most simplified and efficient manner, whilst in some cases, saving money or improving VAT cash flow. Such schemes include:
· Flat Rate Scheme
· Cash Accounting
· Retail Schemes
· Annual Accounting
· Second Hand Margin Scheme
Global VAT Compliance
Remaining VAT compliant becomes increasingly complicated when a business spreads across multiple countries, jurisdictions and tax registrations. Deadlines can be missed, bringing consequences of penalties and interest which can be hugely detrimental to a business’ finances. HB&O’s Indirect Tax department have expert knowledge on global compliance procedures. They provide clients with invaluable support and guidance to ensure you stay on top of your obligations, but also offer insight into how your processes can be streamlined and their systems can be improved in order to maximise efficiency.
Raising Finance
Drawing on decades of knowledge, our in-house team becomes your own commercial finance broker. We can advise on huge range of finance facilities so you’ll have all the options to consider, and being connected to the entire financial marketplace, we guarantee that we’ll find the best solution for your business.Â
Stamp Duty & Stamp Duty Land Tax
As the rules around Stamp Duty and Stamp Duty Land Tax continue to change and become more complex, our advisors are fully equipped to provide reliable, timely advice, so you can rest assured that you’ve paid the correct amount of tax in the most efficient way possible.Â
Other Indirect Tax
Insurance Premium Tax
Insurance Premium Tax (IPT) is a tax on general insurance premiums, including home insurance, landlord insurance, car insurance and pet insurance. There are two different rates of IPT: a standard rate of 12% and a higher rate of 20%. Understanding which insurances are covered by each rate and which are exempt for IPT can be complex – allow our VAT department to assist.
Plastic Packaging Tax
The Plastic Packaging Tax came into effect on 1 April 2022 and is intended to act as a financial incentive for UK businesses to increase their use of recycled plastic in the production of plastic packaging. Its aim is to encourage businesses to move away from single-use plastics and switch to less environmentally damaging packaging. However, it is important to understand exactly how the tax is being applied and based on what criteria.
Contact Us
Want to find out more about us or enquire about working together? We’d love to hear from you. Head over to our enquiry page, fill in the form and we will be in touch!
Related Content
Our Accreditations
