A systematic approach to sales tax
Businesses with an annual turnover in excess of the VAT registration threshold – £85,000 in 2019/20 – must register for VAT.
VAT-registered businesses are then required to prepare returns, usually quarterly, and maintain a VAT ledger in their accounts.
Alchemy’s approach to VAT
We can advise you on whether it’s compulsory for your business to be VAT registered or whether it’s worth registering voluntarily even if your turnover is below the registration threshold. We can also register your business for you.
Likewise, we can advise on any schemes that might benefit your business, such as cash accounting, flat rate, or margin schemes.
At the end of each VAT quarter, once all bookkeeping tasks have been completed, either by you or by Alchemy, we’ll carry out an audit of the bookkeeping records, including the underlying transactions, debtors and creditors.
We want to make sure you’ve claimed VAT on every purchase it should have been claimed on, that it hasn’t been claimed incorrectly on purchases where it shouldn’t and that you have proper VAT invoices as part of your accounting records to support any claims you do make.
Once we are happy with that, we will reconcile the VAT account, to ensure that the VAT on the return corresponds to that on the balance sheet. This means we can pick up any discrepancies from previous quarters and ensure that the correct balance is carried forward.
Then, audit completed, we’ll prepare the return for your approval (all submissions to HMRC must be approved by a director) and, once it’s all signed off, submit your VAT returns to HMRC every quarter.
Finally, if HMRC has any questions or quibbles about the returns we’ve put together, we’ll help you deal with them, explaining the thinking behind each decision, with background notes and evidence.
The benefits of us handling your VAT
Alchemy will make sure your VAT claims are rigorous, reasonable and hold up to scrutiny.
Our VAT service
- Audit of VAT claims
- Quarterly VAT returns to HMRC
- Assistance with VAT queries
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Let's talk about how Alchemy can help your business.