Fides Partners Limited can assist you in applying for a VAT Number on your behalf to filing of your VAT Return. VAT is a burden for all successful companies on a day to day basis. We can review your VAT records and provide assistance with all your VAT reporting. We will monitor your business for any potential VAT problems and help you plan your future in the most efficient way. We can liaise with H M Customs & Excise on your behalf and provide a general support facility for your company.

We have designed the following two packages to process your VAT application:

Process VAT Application only     £ 175             mid       Process VAT Application Liasing with HMRC Deal with additional queries   £ 290

If you are in business and your taxable turnover, not just your profit, goes over the registration threshold you become a 'taxable person'. It is your responsibility to make sure that your inform us when you reach this threshold and failure to do so would mean that Inland Revenue will charged you 15% on all your sales irrespective whether you have charged Vat or not to your clients and also there may be penalties and fines. You must then register for VAT and this can be done by completing Form VAT 1, which you must send to Revenue & Customs within 30 days of any of the above. If you do not register at the correct time you could be fined. There are two types of registration which is the COMPULSORY registration and the VOLUNTARY registration.

Compulsory Registration:

There are two tests for the compulsory registration:

Historic test - If taxable supplies for the last 12 months has exceeded the registration limit of £67,000. In this case the HMRC (UK authorities) should be notified within 30days of the month the limit has exceeded.

Future test - This is where the taxable supplies in the next 30 days is expected to exceed the registration limit of £67,000. The HMRC should be notified before the end of the 30 day period. Any person who fails to register in time will incur a penalty for late registration.

Voluntary registration

If your taxable turnover is below the registration threshold you can apply for 'voluntary registration provided you can prove that what you do is a business for VAT purposes. There are advantages and disadvantages to registering voluntarily. Before you apply weigh up carefully whether it will benefit you.

Benefits include increased credibility for your business and, if your business makes standard or zero-rated supplies, you'll be able to claim back input tax.

However, once registered for VAT, you'll have to:

• account for output tax on all your taxable supplies
• keep proper VAT records and accounts and
• send in VAT returns regularly.

The voluntary registration can be beneficial in a way as it will allow recovery of input VAT (on purchases) and mainly avoid penalties for late registration.

Deregistration:

HMRC allows compulsory deregistration or a voluntary deregistration.

Compulsory deregistration will apply when the taxable person stop making taxable supplies and in this case the HMRC has to be notified within 30 days from the date of cessation.

Voluntary deregistration is allowed if there is evidence that the supplies in the next 12 month will not exceed £65,000. The deregistration takes place after it has been approved by the HMRC.

If you would like to find out more please do not hesitate to contact us.