Value Added Tax (VAT)
Maintaining your VAT records and returns is time consuming and error prone, but Cobble is here to help.
Expertly navigating the intricate complexities of VAT regulations, including Making Tax Digital (MTD), we ensure precise calculations and timely submissions.
Choose our VAT return and regulation services to save time and feel confident that your VAT compliance is in capable hands.
What is Making Tax Digital?
Making Tax Digital (MTD) is a UK government initiative that requires businesses to keep and file their tax records digitally. Instead of traditional paper-based methods, businesses use digital tools to maintain records and submit VAT returns online.
What is VAT?
VAT stands for Value Added Tax.
It is a type of consumption tax that is added to the price of goods and services at each stage of production and sale. The final consumer is responsible for paying the VAT, but it is collected by businesses at each stage.
What happens when you hit the VAT threshold?
If you exceed the 12-month £85,000 VAT threshold, you must register with HMRC within 30 days of the end of the month you surpassed the threshold.
Your VAT registration date is then the first day of the second month after you exceed the threshold.
Can I claim back VAT?
Generally, you can reclaim VAT on business-related purchases, subject to compliance with HMRC rules. Eligibility for reclaiming VAT depends on your business activities and expenses.