First and foremost, it is essential to start the exploration of VAT by grasping the following concept: it is not a tax on a company’s profit; it is an additional amount that the company is collecting on behalf of HMRC.
The vast majority of contractors will be dealing with another business as an end client and VAT registration will not put either the contractor or the client out of pocket. The company collecting the VAT on your sales from your client in addition to your daily rate and passing the VAT element on to HMRC; if your client is also VAT registered they will claim the VAT back from HMRC and it has then gone full circle, with the net effect to both you and your client being nil.
So if the VAT goes full circle, what’s the point of it as a tax? Well, it exists to tax the end consumer, the individual at the end of the line who is buying the end product – as we all know to our cost whenever we buy goods and services personally.
There are rules in place that make it compulsory at certain times for a business to register for VAT and there are other times when it is actually beneficial to register for VAT voluntarily.
Why Integro Accounting?
Integro Accounting is the UK’s only specialist provider of fixed fee, limited company accountancy services for contractors, consultants and freelancers that was established to an award winning standard – our Practice Manager, Maria Hickmott FCCA, won The British Accountancy Awards’ ‘Accountant of the Year’ in 2011.
We were set up with the vision of providing a service that is the ultimate for the dynamic, busy professional of today in a language you understand.
Integro Accounting have designed a bespoke service for the contractor who is always on the go; never forgetting that one size will never fit all.
The relationship you have with your accountant is the most important factor in our service which is why we will always offer unlimited contact with your own personal accountant; whether that contact is via the phone, email or face to face.
We have our 3 offices located in London, the South-West and on the Bedfordshire and Buckinghamshire border. There are also meeting locations in many of the major cities and towns across the Home counties, South-West and South Wales, all conveniently placed so that you never have to travel far to meet your accountant.
If you have any questions about contracting or would like to find out more about how Integro Accounting can help you and business please call Christian on 01525 303984, email firstname.lastname@example.org or request a callback.