BOOK KEEPING AND VAT
Well managed and up-to-date accounting records are essential in the running of any successful business and good records and advice are vital to protect businesses from any unexpected tax that may arise as a result of investigation or VAT Inspection.
what is book keeping?
‘’the activity of keeping records of the financial affairs of a business’’
Its worth knowing that there are no rules on how you must keep records at the moment. You are required to do this from day 1 of business activities. They can be on paper, digitally or as part of accounting software. Book-keeping is essential to being able to identify and track your business transactions within in a business.
what is VAT?
Value added tax, or VAT, is the tax you have to pay when you buy goods or services
The standard rate of VAT in the UK is 20%, At the moment if your turnover is above £85,000 annually you are required by law to register for VAT and file VAT returns.
Standard rate of vat in the uk
Required by law to register and file VAT returns
Here is a link to the HMRC’s website for more info:
VAT Registration Thresholds
Why should you carry out book-keeping & Prepare VAT returns?
HM Revenue & Customs can charge you a penalty if your records are not accurate, complete and readable, so its important to make sure you get it right. Not only have we been working with client books and records for over 20 years (since the big red ledger days!) we are accredited partners of Xero, Sage and Quickbooks. If you would like to discuss you records – please don’t hesitate to contact us.