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Accountants in Preston

VAT (Value Added Tax)


Our services include full VAT processing.

As part of our Bookkeeping service, we will prepare and submit your VAT returns.

Introduction to VAT

VAT is charged when a VAT registered business sells to either another business or to a non-business customer.

VAT is charged on most goods and services by VAT registered businesses in the UK.

VAT is also charged by HMRC on goods and some services that are imported from countries outside the European Union (EU), and brought into the UK from other EU countries.

If you are VAT registered, you can generally reclaim the VAT you pay on your purchases.

There are three UK rates of VAT, depending on the goods or services the business provides. The rates are:

  • standard:20%
  • reduced: 5%
  • zero: 0%

There are also some goods and services that are:

  • exempt from VAT
  • outside the UK VAT system altogether


Registering for VAT

If you are a business, and the goods or services you provide count as 'taxable supplies' you must register for VAT if either:

  • your turnover for the previous 12 months has gone over the 'VAT threshold' (currently 77,000)
  • you think your turnover will soon go over this limit

You may also choose to register for VAT voluntarily.



HMRC Help


This link will take you to more information on the HMRC website: http://www.hmrc.gov.uk/vat/start/introduction.htm