VAT Services

IT & Accounting Solutions Limited provides practical VAT compliance and advisory support to businesses, charities, social enterprises and other organisations.

VAT can be complex, and errors may result in penalties, interest, unexpected liabilities or missed opportunities to recover tax. We help clients understand their obligations, maintain accurate records and submit VAT returns correctly and on time.

VAT registration

We can assist organisations that are required, or may wish, to register for VAT.

Our VAT registration service may include:

  • reviewing whether registration is required;
  • considering the VAT registration threshold;
  • identifying the appropriate registration date;
  • preparing and submitting the VAT registration application;
  • considering voluntary registration;
  • reviewing business activities and taxable supplies;
  • helping select an appropriate VAT accounting method;
  • assisting with agent authorisation; and
  • advising on record-keeping requirements.

The correct VAT treatment will depend on the nature of the organisation, the supplies it makes and its individual circumstances.

VAT returns

We prepare and submit VAT returns for clients using compatible digital accounting systems.

Our service may include:

  • reviewing VAT transactions;
  • checking VAT coding;
  • reconciling VAT control accounts;
  • reviewing sales and purchase records;
  • checking input VAT claims;
  • identifying unusual or high-risk transactions;
  • preparing the VAT return;
  • submitting the return to HM Revenue & Customs; and
  • advising the client of the amount payable and the payment deadline.

We can provide VAT return services monthly, quarterly or annually, depending on the organisation’s VAT arrangements.

Making Tax Digital for VAT

Most VAT-registered organisations are required to keep digital records and submit VAT returns using Making Tax Digital-compatible software.

We can assist with:

  • selecting appropriate accounting software;
  • setting up QuickBooks Online or another compatible system;
  • migrating from spreadsheets or legacy systems;
  • establishing digital record-keeping procedures;
  • reviewing digital links;
  • correcting VAT configuration issues;
  • training staff; and
  • preparing and submitting Making Tax Digital VAT returns.

Our accountancy and technology experience allows us to consider both the VAT requirements and the practical operation of the accounting system.

VAT bookkeeping and coding reviews

Accurate bookkeeping is essential for reliable VAT reporting.

We can review:

  • VAT codes;
  • sales invoices;
  • purchase invoices;
  • credit notes;
  • bank transactions;
  • expense claims;
  • imports and exports;
  • reverse charge transactions;
  • exempt and zero-rated supplies;
  • outside-the-scope transactions; and
  • VAT control account balances.

Where errors are identified, we can recommend corrections and improvements to reduce the risk of future problems.

Input VAT recovery

Not all VAT incurred by an organisation is automatically recoverable.

We can assist with reviewing:

  • whether VAT has been properly charged;
  • whether a valid VAT invoice is held;
  • business and private use;
  • blocked or restricted input tax;
  • pre-registration expenses;
  • capital expenditure;
  • employee expenses;
  • mileage and fuel costs;
  • entertaining expenses;
  • mixed business and non-business activities; and
  • partial exemption restrictions.

We aim to ensure that valid VAT is recovered while reducing the risk of unsupported or incorrect claims.

Partial exemption

Partial exemption can apply where an organisation makes both taxable and exempt supplies.

This is particularly relevant to some charities, membership organisations, education providers, property businesses and other organisations with mixed activities.

We can assist with:

  • identifying exempt and taxable income;
  • reviewing directly attributable costs;
  • calculating residual input tax;
  • applying the standard partial exemption method;
  • considering de minimis limits;
  • preparing annual adjustments;
  • reviewing special-method requirements; and
  • improving accounting records to support the calculations.

Partial exemption can be technically complex, and the appropriate treatment will depend on the organisation’s activities and cost structure.

Charities and not-for-profit organisations

Charities and not-for-profit organisations are not automatically exempt from VAT.

We have experience helping organisations consider VAT in relation to:

  • grants and contracts;
  • donations and sponsorship;
  • membership subscriptions;
  • education and training;
  • fundraising activities;
  • room and property hire;
  • catering;
  • events;
  • trading subsidiaries;
  • business and non-business activities;
  • restricted projects; and
  • shared costs.

We help clients distinguish between income that is outside the scope of VAT, exempt, zero-rated or taxable.

Property and VAT

VAT on land and property can involve significant amounts and complex rules.

We can provide support with:

  • commercial property transactions;
  • property rental income;
  • options to tax;
  • VAT on property expenses;
  • mixed residential and commercial use;
  • development costs;
  • capital expenditure;
  • service charges;
  • property management activities; and
  • liaison with legal advisers and other specialists.

Specialist advice may be required before entering into significant property transactions.

VAT schemes

Depending on the organisation’s circumstances, alternative VAT schemes may simplify administration or affect the timing of VAT payments.

We can assist with considering:

  • the Cash Accounting Scheme;
  • the Annual Accounting Scheme;
  • the Flat Rate Scheme;
  • retail schemes;
  • margin schemes; and
  • other sector-specific arrangements.

We will consider whether a scheme is suitable rather than assuming that the simplest scheme will always produce the best result.

International transactions

VAT treatment may be affected where goods or services are bought from or supplied to customers outside the United Kingdom.

We can assist with routine matters involving:

  • imports;
  • exports;
  • services supplied overseas;
  • services purchased from overseas suppliers;
  • reverse charge accounting;
  • postponed import VAT accounting;
  • import VAT statements;
  • evidence of export;
  • overseas customers and suppliers; and
  • place-of-supply considerations.

Complex international transactions may require specialist advice in the relevant jurisdiction.

VAT deregistration

We can assist where an organisation is no longer required or eligible to remain VAT registered.

Our service may include:

  • reviewing whether deregistration is appropriate;
  • selecting the correct deregistration date;
  • preparing the deregistration application;
  • considering VAT on assets and stock held at deregistration;
  • preparing the final VAT return;
  • reconciling VAT accounts; and
  • advising on record-retention requirements.

Correcting VAT errors

VAT errors should be corrected promptly and using the appropriate method.

We can assist with:

  • identifying the nature and value of the error;
  • determining the VAT periods affected;
  • assessing whether the error can be corrected through a VAT return;
  • preparing voluntary disclosures to HMRC;
  • calculating interest or potential penalties;
  • documenting the correction; and
  • improving procedures to prevent recurrence.

Where necessary, we can correspond with HMRC on the client’s behalf.

HMRC enquiries and correspondence

We can assist clients with routine VAT enquiries and correspondence from HMRC.

This may include:

  • responding to requests for information;
  • providing accounting records and reconciliations;
  • explaining VAT treatments;
  • reviewing assessments;
  • checking penalty notices;
  • assisting with VAT repayment enquiries; and
  • liaising with HMRC during compliance checks.

The scope of our work will depend on the nature and complexity of the enquiry.

VAT planning and transaction reviews

It is often better to consider VAT before a significant transaction takes place.

We can review the potential VAT implications of:

  • new business activities;
  • changes in pricing;
  • contracts and funding arrangements;
  • property transactions;
  • business acquisitions or disposals;
  • restructuring;
  • new income streams;
  • international transactions;
  • capital projects; and
  • changes in legal structure.

Where highly specialist advice is required, we may recommend obtaining advice from a VAT specialist or legal adviser.

Who we support

We provide VAT services to:

  • small and medium-sized businesses;
  • owner-managed companies;
  • sole traders and partnerships;
  • charities;
  • charitable incorporated organisations;
  • community interest companies;
  • social enterprises;
  • membership organisations;
  • education and training providers;
  • property businesses; and
  • professional and service organisations.

Why choose IT & Accounting Solutions?

  • Established in March 2004
  • More than 20 years of accountancy experience
  • Practical VAT and bookkeeping support
  • Strong charity and not-for-profit expertise
  • Cloud accounting and Making Tax Digital experience
  • Accountancy and technology expertise in one practice
  • Clear explanations and responsive support
  • Based in Maidstone and supporting clients across the UK

Important information

VAT treatment depends on the facts and circumstances of each transaction.

Information on this page is general and does not constitute advice relating to a particular organisation or transaction. Clients should seek advice before taking action where the VAT treatment is uncertain or potentially significant.

Professional regulation

IT & Accounting Solutions Limited is an accountancy practice regulated by the Association of International Accountants for the provision of accountancy services.

The practice is supervised by the Association of International Accountants for compliance with the Money Laundering Regulations 2017.

Marcel Jung is a Fellow of the Association of International Accountants and holds an AIA practising certificate.