Accountants Sutton – Flat Rate VAT Changes

Accountants Sutton wide are busy helping businesses that have been impacted by the flat rate VAT changes that were introduced by Chancellor Philip Hammond in the Autumn Statement. The changes take effect from April 2017, and hiring one of the best accountants Chichester can offer to help you with this is a wise move.

Philip Hammond’s Autumn Statement revealed significant changes with regards to the amount of VAT that small business owners need to pay. This will largely impact any company that currently utilises the VAT Flat Rate Scheme, yet does not spend much money on raw materials. This is most likely to have an influence on service-related firms. Such firms are now labelled limited cost traders. They are able to use the Flat Rate Scheme, but they will be charged a higher rate of 16.5 per cent. To determine whether you are a limited cost trader, you need to work out how much you spend on the sales of goods (not services) per accounting period. If you spend less than two per cent on the sales of goods, you are a limited cost trader. If you spend less than £1,000 per year, you will also be a limited cost trader, irrespective of how much of your turnover is on goods. This means that limited cost traders are going to be subject to a higher amount of tax, and so it may be worth switching to a different VAT scheme. This is something your tax return accountant can advise on.

If you are looking for accountants Sutton based that can help your business in regards to the VAT changes outlined in the Autumn Statement, or if you need professional assistance with anything relating to tax, you can count on AMG Financial Chartered Tax Advisers & Accountants to deliver. Check out our website today: