Calculating Vat Advice
National Advice Service can answer your general questions concerning calculating VAT deficits or overpayments, rules, procedures, disclosure of confidential VAT information, VAT prices and books.
What they can’t offer is advice or help clearing a VAT or other tax debt, the VAT registration process or inquiries about particular VAT transactions.
Call their helpline at 0845 010 9000. Interpretation services are offered for people who do not speak English as their first language, simply tell the advisor if you call. Textphone service is available if you have hearing problems at 0845 000 0200.
Select option one in the event that you have dropped your VAT return form and do not need additional assistance. Select option two if you need VAT or Intrastat publications or advice. Free Vat Measure Option three will route your call to an advisor of Excise and Customs taxes as well as landfill tax, climate change levy and other tax classes. You will be led to a VAT advisor if you don’t make a selection.
If the advisor is unable to answer your VAT query, he or she’ll re-route your call to the proper office or supply the phone number of an office that can help you.
Calculating VAT is dependent upon a number of variables. Your business must charge VAT at one of three rates (regular, 17.5 percent; decreased, 5 percent and zero rates, 0 percent.) . Furthermore, your business is billed a VAT rate, typically the same rate you have to collect. The gap between the input and output taxes are what you must pay HMRC upon your annual return.
If your taxable turnover is less than ₤55,000 annually, you shouldn’t worry about calculating VAT. You may wish to register voluntarily if you think there your turnover might exceed ₤55,000, the fee for not registering is steep.
VAT as an allowable
Some business situations allow the business owner or owner to compute VAT as an expense of the business. To compute VAT as a cost, the total VAT paid for C& E during the evaluation period must exceed the total VAT obtained from C& E at precisely the same period. The excess of VAT paid is considered an expense.
Should the situation be reversed, and the overall VAT obtained from C& E throughout the evaluation phase exceeds the total VAT paid to C& E during the same assessment period, the refund isn’t counted as a business earning.
Ideally, you should talk with a tax advisor before making any adjustments to your tax calculation methods. A tax advisor should be able to offer advice accurate to your specific needs.