VAT and Flat Rate VAT (FRV)

Registering for VAT and FRV could pay for your accounting fees!

VAT is a tax that a company is required to charge on the goods and services that it provides to its customers. The current standard VAT rate is 17.5%.

A company is only required to register for VAT with HM Revenue & Customs when its turnover reaches the VAT threshold in any 12 month rolling period.

The VAT threshold for the current tax year (2009/2010) is £68,000.

You can also opt to be VAT registered on a voluntary basis.

Flat Rate VAT (FRV): To lessen the burden of administration and paperwork, HMRC allows companies in certain industries to pay a reduced percentage (e.g. 12%) of VAT to HM Revenue & Customs, but still claim the full 17.5% from their clients. Registering for FRV can therefore increase your gross take home pay.

As such, we recommend registering for VAT and FRV for the majority of our clients. If you invoice £35,000 or more per annum, the additional savings could exceed all of your accounting fees.

1st Contact can process your registrations for both VAT and FRV, maintain your cashbook, prepare your VAT calculations each quarter, complete your VAT returns and inform you of the amount of VAT that is deemed to have been collected by you on behalf of HMRC, thus making the whole process seamless.