VAT registered businesses are required to account both promptly and accurately for all the tax revenue collected by them. The VAT system is policed by HMRC with heavy penalties for breaches of the legislation. Ignorance is not an acceptable excuse for not complying with the rules.
Remaining compliant can be complex – so please do get in touch with the VAT specialists at DRG Chartered Accountants to discuss your specific VAT accounting requirements.
Read this factsheet on "VAT" to find out more on:-
- What is VAT and its scope?
- What is a taxable person?
- VAT administration
- Inspection of records
- Offences and penalties
- Cash accounting scheme
- Retail schemes
- Flat Rate scheme
- Making Tax Digital for Business – VAT
Amended VAT payment deadlines due to COVID-19
Businesses that deferred VAT payments in 2020 can now join the new online VAT Deferral New Payment Scheme to pay their liability in smaller monthly instalments. To take advantage of the new payment scheme businesses will need to have deferred VAT payments between March and June 2020, under the VAT Payment Deferral Scheme. They will now be given the option to pay their deferred VAT in equal consecutive monthly instalments from March 2021. Businesses will need to opt-in to the VAT Deferral New Payment Scheme. They can do this via the online service that opened on 23 February and closes on 21 June 2021.
Reduced VAT rate for hospitality sector
In July 2020, the government introduced a temporary 5% reduced rate of VAT for certain supplies of hospitality, hotel and holiday accommodation and admissions to certain attractions. In September 2020 the Chancellor extended the reduced rate to 31 March 2021. The government has now announced an extension of the reduced rate until 30 September 2021. To help businesses manage the transition back to the standard 20% rate, a 12.5% rate will apply for the subsequent six months until 31 March 2022.
DRG Chartered Accountants offers a full range of VAT services – please do get in touch with our team of VAT specialists to discuss how we can help you and your business.
DISCLAIMER: This information is for guidance only, and professional advice should be obtained before acting on any information contained herein. We will not accept any responsibility for loss to any person as a result of action taken or refrained from in consequence of the contents of this publication.