For a wealth of advice and information on aspects of VAT, including essential tips for VAT planning, and how to survive the VAT inspector's visit, visit our VAT guides.
The standard rate of VAT is 20% and remains unchanged.
Under the normal rules of VAT, a supplier has to account for output tax even if the supply has not been paid for. VAT cannot be reclaimed by issuing a credit note for the unpaid amount.
Although the VAT rules normally prevent you reclaiming VAT on supplies that are not made direct to you, there are certain circumstances when the rules are relaxed.
Deregistration from VAT is usually a fairly straightforward process. However, there are some important aspects to bear in mind which, if misunderstood, could prove costly.
Under annual accounting, you make agreed payments on account and need complete only one VAT return per year. The purpose of the scheme is to aid cashflow and budgeting.
If you need to check you are being given a valid VAT number you can call HMRC's national advice service on 0845 010 9000 from 8am to 6pm Monday to Friday.
One of life's certainties is that if you are a VAT registered business, sooner or later you will have a check by an HMRC officer, either at your business premises or remotely.
VAT grouping occurs where two or more corporate bodies, usually companies or limited liability partnerships are treated as a single taxable 'person' for VAT purposes. A VAT group is treated in the same way as a single company registered for VAT on its own.