VAT can be a complicated tax to get your head around. All businesses with a turnover of more than £85,000 need to become VAT registered. This then means that the business needs to charge VAT on their products and service and can reclaim VAT on those products and services that they have bought as long as they are not VAT exempt.
VAT exempt products are not the same as zero=rated products. Exempt products do not need to have a VAT portion added to their novice line, whereas zero-rated products have a VAT portion added at 0%. An Accountants Swindon way can help you out with understanding the different rates of VAT on different products.
When it comes to submitting your VAT return Swindon based accountants Chippendale and Clark can help you to ensure that you have charged and reclaimed the right amount of VAT, before you submit the return to HMRC.
Here are some of the categories of products that are VAT exempt:
- Some food and drink items – this is not an exclusive group so make sure you check with your accountant what has VAT added and what does not in this category of products.
- Clothing for children
- Books, magazines, maps and newspapers and other publications
- Charity shop items
- Gambling such as lottery tickets, betting and bingo
- Insurance and financial products