Business

The consumption tax we pay in the UK

If you have ever seen VAT added to the price of an item and wondered what it is, you have come to the right place. VAT is in essence a consumption tax that filters down the supply chain from the initial maker to the end-user. There could be many steps in this chain and along the way, companies will be filing VAT returns through  Accountants Swindon way, as well as claiming back VAT on the items that they purchase. If you are looking for support with VAT returns then Chippendale and Clark Accountants in Swindon can help with any aspects that you might be struggling with or looking for others to take on for you.

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Not all items have VAT added on to them and it can be complicated to get your head around what items you need to charge and claim VAT on. This is often why businesses who are VAT registered use accountants to at least check that they are filing these returns correctly. The rules also differ for charities when compared to limited companies or sole traders.

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VAT is paid by businesses in each section of the supply chain to HMRC and it is compulsory for a business to register for VAT when their business turnover reaches £85,000. A company whose turnover is less than this can decide to voluntarily register for VAT if they want to.

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