After registering, a company that sells its products or service must charge VAT on each invoice issued. At the same time, you should keep a VAT record related to the company's purchases (for the company's purposes). The difference is the VAT to be paid or to be recovered for Inland Revenue.
There are three basic VAT rates in the UK:
standard rate 20%
reduced rate 5%
reduced rate 0%
VAT settlements should be made every three months. On a special request, you can carry out settlements for longer or shorter periods, but this is not a commonly used method. In the case that the VAT which is calculated on the sales of the company, exceeds the VAT calculated on the costs, the company must pay the difference to HMRC. In the opposite situation, you will receive a refund from HMRC.
Having previously experienced numerous delays in the completion of my accounts and submission to the relevant authorities by previous accountants, I have to say how much of a refreshing change it has been to have everything dealt with on time By ABS-Service Ltd.
I dreaded each quarter as it came around until I met with the team at ABS-Service Ltd. For the last couple of years all I have had to do is present my paperwork by an agreed date and everything is taken care of. We then had a further chat and I have been able to reduce my VAT bill by over 50%.
We've been dealing with ABS-Service Ltd for 3 years now and have always found their industry knowledge, expert advice and professional service provided by the 'Team' at ABS-Service Ltd a great resource for our company.