Calculating Vat Advice
National Advice Service can answer your general questions concerning calculating VAT deficits or overpayments, rules, procedures, disclosure of confidential VAT info, VAT prices and publications.
Call their helpline in 0845 010 9000. If you would like to speak to someone in Welsh, call 0845 010 0300 Monday to Friday from 8 am to 6 pm. Interpretation services are available for those who do not speak English as their first language, simply tell the advisor when you call. Textphone service is available if you have hearing problems in 0845 000 0200.
Your VAT registration number and postcode should be available before you call; you may need both these records to get accurate advice. Select alternative one in the event that you have dropped your VAT return type and do not require additional assistance. Select choice two if you require VAT or Intrastat publications or advice. Option three will route your call to an advisor of Excise and Customs taxes in addition to landfill tax, climate change levy and other tax categories. You’ll be directed to some VAT advisor if you don’t make an option.
If the advisor is not able to answer your VAT question, he or she will re-route your call to the proper office or supply the telephone number of a office that can help you.
Calculating VAT depends on a number of variables. Your business should charge VAT at one of three rates (standard, 17.5 percent; reduced, 5% and zero rates, 0 percent.) . Vat Calculator Additionally, your business is billed a VAT rate, typically the same speed that you must collect. The gap between the input and output taxes are exactly what you must pay HMRC on your annual return.
If your taxable turnover is less than ₤55,000 yearly, you shouldn’t bother about calculating VAT. You might wish to enroll voluntarily if you think there your turnover could exceed ₤55,000, the fee for not enrolling is steep.
VAT as an Expense
Some business situations allow the business owner or accountant to calculate VAT as a cost of the business. To calculate VAT as an expense, the total VAT paid to C& E during the assessment period must exceed the overall VAT obtained from C& E in precisely the same period. The surplus of VAT paid is regarded as a cost.
Should the situation be reversed, and the total VAT obtained from C& E throughout the assessment phase exceeds the total VAT paid to C& E throughout the same examination period, the refund is not counted as a business earning.
Ideally, you should talk with your tax advisor before making any adjustments to your tax calculation procedures. A tax consultant should be capable of giving advice accurate for your special needs.