The UK VAT regulatory environment can be complex. With its various rates, exemptions, and schemes, it can make it hard to minimise your VAT liability on your own. VAT specialists at Praxis will bring order to your VAT compliance activities. 

UK tax law required businesses that have yearly revenues in excess of £85,000 to register for VAT. This applies to businesses that expect their revenues to go beyond that threshold within 30 days too. Exceptions are available to this rule. Once your business has registered for VAT, you must file quarterly VAT returns. You must also pay any VAT due to HMRC and have the options of requesting a refund if it is due to you.

VAT registration

If your business meets the requirements set by UK tax law, you have to register for VAT. This involves reaching out to HMRC with supporting information and other relevant details. Ideally, you should aim to register as soon as possible. This could be right after your business has met the requirements. This is because it may take some time before you are given your VAT number. But you will be required to charge VAT on your products and services before. This might become a little hard to do in the absence of a VAT number. You can also opt for voluntary registration if you believe your business will meet the criteria within the next 30 days.

Praxis VAT specialists help you determine when your business should register for VAT. We can get your business registered for VAT, prepare VAT returns and make requests for VAT refunds.

Apply for a VAT registration exception

You can also apply for an exception to the legally required VAT registration. This can happen if your business’s revenue exceeds £85,000 but will remain under £83,000 in the next twelve months. But writing to HMRC with appropriate evidence to support your claim can be complex. Praxis can help ease the burden of organizing this information. This can ultimately increase the chances of getting an exception for your business.

Voluntary VAT registration

VAT registration is legally required over a certain revenue threshold. But some businesses choose to register for VAT voluntarily. One of the reasons is to get a refund on the VAT that is paid during the setting up of the business. Most materials and services new businesses use usually come from VAT registered businesses. Voluntarily registering for VAT allows you to claim a refund on those purchases.

VAT exemptions on goods and services

There are VAT exemptions available for various goods and services. VAT regulation defines and applies these exemptions based on a product’s category, but these definitions are broad. This could make it difficult to get an exemption on your product. Praxis can help fight your case with HMRC to reduce your tax liability.

Charging VAT on exports

There is VAT to be paid on products or goods your business is selling when they are sold to customers. If the goods are being exported, they may be able to zero-rated – no VAT is due on them. HMRC requires that you provide proof for the export of such goods and services in order to zero rate them. 

Additionally, you will also be required to keep records as proof of the sale. The tasks around this can take quite some time to properly execute. Praxis can offer advice and guidance on best pracitces.

Avoiding VAT-related penalties

Businesses that fail to file VAT returns in time can end up paying up to 15% more through surcharges. Even simple mistakes, such as submitting a paper-based VAT return to HMRC can cost you up to £400.

The team at Praxis iare VAT specialists, and we can work together to ensure your VAT liability is as little as possible. We can make sure that your business stays safe from surcharges and penalties, making sure your accounts are in order and filing your VAT returns in time.

Disputes and appeals with HMRC

HMRC is constantly going after tax evaders and avoiders. It so happens that many businesses often get caught in their crosshairs. You could receive a higher than usual VAT liability bill or be faced with an investigation – which often want to look at your accounts. Most of these situations require careful handling and you want to ensure a manageable outcome for your business.

Praxis combines an understanding of the VAT environment with experience in handling disputes. This allows us to become vital support mechanisms for our clients whenever a dispute arises with HMRC or an appeal has to be filed. We can represent your business when negotiating with HMRC and can also advise you regarding your case with respect to HMRC’s authority. This includes advice on their authority to demand information and documents. Find out more about our tax investigation support.