Used Equipment

Vat Schemes and Vat Thresholds

Vat Registration

Businesses become liable for vat when sales reach the vat threshold set on 1st April 2007 at £64,000 p.a. regardless of whether that business has registered for vat purposes. Businesses whose customers are vat registered should consider opting for voluntary vat registration as sales would not be affected by vat registration and registering would permit that business to also reclaim vat input tax on purchases. Businesses with mainly non vat registered customers may wish to delay vat registration until the point is reached at which liability to vat tax becomes inevitable. Consideration should be given to maintaining sales below the vat threshold provided this does not result in a significant loss of profit. When the vat threshold of £64,000 p.a. is exceeded Customs & Excise should be advised. It may be possible to delay vat registration if sales breached the vat threshold due to an abnormal sales period that may not necessarily be repeated in the foreseeable future. Having reached the point of vat registration consideration should be given to the various vat schemes which are available to either simplify the vat calculation or smooth the vat tax liability.

Choose the right vat scheme for your business

Unless a vat scheme is adopted then the standard inputs and outputs vat scheme would be applied. This involves charging all customers vat on sales known as output vat and paying this amount to the Vat office each quarter. Vat Registered businesses can also deduct from the vat liability the input vat on purchases that suppliers have charged the business. It is important to ensure all sales and purchase invoices are retained and an audit trail from the individual transactions to the vat tax liability is maintained as Customs & Excise do inspect vat records, the frequency of those visits, often once every three years can increase dramatically if the vat records are considered inadequate. Accounting Software can provide a solution to record keeping and DIY Accounting produce automated vat calculations from the basic data entry of sales and purchases on excel spreadsheets.

Vat Schemes

Vat Flat Rate Scheme

The vat flat rate scheme can be adopted by businesses that have an annual turnover excluding vat of under £150,000 p.a. Instead of paying the difference between vat on sales and vat on purchases businesses that have adopted a vat flat rate scheme pay vat at a percentage of sales in line with the average for that trade sector. Vat is not reclaimable on purchases under the flat rate scheme. The Customs & Excise website contains details of the vat flat rate percentages for each sector. Customers are charged vat at the normal vat rate, 17.5% if standard rated goods. The actual vat payable is then calculated at the appropriate percentage of the total sales figure including vat. An adjustment to the accounts would then be required to adjust for the difference between the vat paid and the amount payable if an inputs and outputs basis had been used. DIY Accounting software automates this flat rate calculation by automatically calculating the vat on sales at the flat rate and expensing the vat input to the purchase accounts. Businesses in their first year of vat registration also receive a 1% reduction in the vat flat rate for their trade sector which can save tax.

Annual Vat Accounting Scheme

Not suitable if you receive repayments of vat, the annual accounting scheme is based upon an annual estimate of the vat bill which is then paid in monthly or quarterly instalments throughout the year with the balance payable or received at the end of the year when the annual vat return has been submitted. The vat threshold for this scheme is businesses with a sales turnover not expected to exceed £1.25m. The main benefit of the annual accounting scheme is to smooth the vat payments over the year.

Vat Cash Accounting Scheme

Under the vat cash accounting scheme the vat return and liability to pay vat is based upon the date sales were received and the date purchases were paid rather than the invoice tax points.

The vat threshold for the cash accounting scheme is businesses with a sales turnover excluding vat of under £1.35m.which can be extended for existing users to a turnover of £1.6m and left in place for up to 6 months after the vat threshold has been breached.

Accounting for vat using the Cash Accounting Scheme may require businesses to record sales and purchases on cash received and paid basis and adjust accounting records for accruals. Alternatively, sales and purchases can be entered into the Accounting records based upon the invoice tax points and a quarterly adjustment made for debtors and creditors at the beginning and end of each quarter. Such accounting adjustments would not be suitable for everyone.

Vat Retail Schemes

Retailers selling to the general public may not easily be able to produce vat sales invoices to individual customers and there are various vat retail schemes available on the Customs & Excise website that retailers can adopt. The main benefits of the vat retail schemes are to dispense with every customer being issued a vat invoice unless requested. Vat retail schemes can be used in conjunction with both flat rate schemes and the annual vat accounting scheme.

About the Author

Terry Cartwright provides automated Accounting Software for vat and non vat registered businesses at Accounting Software specifically catering for Small Business Software for both self emnployed and small to medium limited liability companies

IR-40 IR40 Elite CR-101 CR101 9853 Ink – Inc VAT & P&P $2.01

IR-40 IR40 Casio 140CR 140 CR Ink – Inc VAT & P&P $2.01

IR-40 IR40 Geller NT-1071 NT1071 9853IR – Inc VAT&P&P $2.01

IR-40 IR40 SAMSUNG ER-100 ER100 SAM4S – Inc VAT&P&P $2.01

IR-40 IR40 Casio 160CR 160-CR 9853IR – Inc VAT&P&P $2.01

IR-40 IR40 Casio 115ER 115-ER 116ER 116 -Inc VAT & P&P $2.01

IR-40 IR40 Geller NT-1081 NT1081 PZ-1 PZ1 – Inc VAT&P&P $2.01

IR-40 Sharp XE-A110 XEA110 XEA-110 Ink – Inc VAT & P&P $2.15

IR-40 Casio 115ER 115 ER 116ER 116 Ink – Inc VAT & P&P $2.56

Self adhesive cable tie mount. 19mm Black INC VAT $4.70

Ink Roller IR90 IR91 IR-91 IR-90 IR92 IR-92 Inc VAT,P&P $6.29

IR-40 IR40 For Sam4s ER-180 ER180 Ink – Inc VAT & P&P $7.84

ERC-23 ERC23 Ink Ribbon Carma 2832FN Inc VAT & P&P $7.86

Ink Roller IR92 IR91 IR-91 IR-92 Inc VAT & POSTAGE $8.49

Allen Bradley 1771-WA | 12 mo. warranty | Free UK/EU Shipping | Price Inc UK VAT $9.43

Allen Bradley 1771-WH | 12 mo. warranty | Free UK/EU Shipping | Price Inc UK VAT $9.43

4 PACK – IR-40 9853IR 9853 Ink Roller – Inc VAT & P&P $9.43

Socket XLR Panel 5 Pole Audio Video Connector Neutrik x 1 pc NEW inc VAT $9.41

IBM THINKPAD 600X LAPTOP RAM COVER INC VAT $10.22

American SIZE CORDEX MAGAZINE BINDER VAT Inc. $10.53

512MB RAM MEMORY FOR ACER TRAVELMATE 250 LAPTOP INC VAT $10.99

Steadtler Marsmatic 750 0.5mm 750M05 Nib BNIB inc VAT $11.79

MITSUMI FLOPPY DISK DRIVE (FDD) D63119 INC VAT $12.56

HP G7000 LAPTOP USB PORTS BOARD LS-3731 – INC VAT $12.56

Rotring Rapidograph 0.70mm Art.755070 Nib BNIB inc VAT $12.34

Siemens 3RH1921-2HA22 | 12 mo. warranty | Free UK/EU Shipping | Price Inc UK VAT $13.20

Siemens 3SB3801-0AA3 | 12 mo. warranty | Free UK/EU Shipping | Price Inc UK VAT $14.82

DELL STUDIO 1535 1536 1537 1555 1557 1558 LAPTOP USB PORT WITH CABLE inc VAT $15.70

Brother TN 2110 TN2110 Toner Refill inc new cap & VAT $18.84

Brother TN2005 TN 2005 Toner Refill inc VAT JUMBO FILL $18.84

Toner Refill Black Samsung CLX 3175 NO CHIP inc vat $18.84

Brother HL 2150N HL 2150 Toner Refill inc new cap & VAT $18.84

Brother MFC 7320 Toner Refill inc new cap & VAT TN2120 $18.84

Brother DCP 7045 TN 2120 Toner Refill inc new cap & VAT $18.84

New HP Q1996A AIT Cleaning Tape / Cartridge. Upto 70 cleans. £12 inc VAT $18.86

Brother DCP 7060 DCP7060 TN2220 Toner Refill inc VAT JUMBO FILL $19.65

Brother DCP 7070 DCP7070 TN2220 Toner Refill inc VAT JUMBO FILL $19.65

Brother HL 2130 HL2130 TN 2010 Toner Refill inc VAT JUMBO FILL $20.42

NEW 30 X SWAGE FERRULES 3/8″ 1 & 2 WIRE inc vat $20.59

DELL PP14L LAPTOP CD/DVD DRIVE – INC VAT $23.56

HP 9500 CYAN DRUM RESET CHIP C8561A INC VAT $23.56

Panasonic VB-3411uk DBS Telephone VB3411 VAT Inc $23.57

Avaya Index 2010 Phone (Refurbished) in Grey Vat Inc $23.57

Siemens 6ES5710-8MA11 | 12 mo. warranty | Free UK/EU Shipping | Price Inc UK VAT $24.52

Bergen Hex, Torx & Spline Set 40pc INC Vat AT082 $25.93

Hand Winch for Boat/Car Trailer 1200lb Inc Vat TE141 $26.70

Siemens Optiset E Key Module.VAT Inc $27.50

Panasonic KX-T7310 Telephone in White 7310 Vat Inc $27.50

BT BCM BRI-4 Port S/T Media Bay Mod NT7B76AB Inc Vat $27.50

Nortel T7000 Phone in Platinum (Refurbished) VAT Inc $27.50

SOUND BOARD FOR TOSHIBA SATELLITE SP6100 LAPTOP INC VAT $31.42

8DSTU-S1 EXPANSION CARD FOR NEC DX2E inc VAT $31.43

BERGEN TOOLS 4pc COLD CHISEL SET chisels (inc VAT) $31.35

Samsung Euro Enhanced 6B Black Inc Vat. $31.43

NEW 10 X SWAGE FERRULES 1″ 1 & 2 WIRE inc vat $31.87

Samsung DCS / IDS CARD EXPNA (Refurbished) Vat Inc $31.43

BT Versatility Internet Module Inc VAT $31.43

5 PACK – PERC-27 ERC27 Ink Ribbon Inc VAT & P&P $31.43

BT MERIDIAN M3310 Black Telephone Free Delivery Inc VAT Inv 90 Days RTB Warranty $31.35

BT M7000 White Phone inc VAT $31.43

BT Nortel BCM 50 Race Licence Inc VAT $31.43

1 Pair 310 x 30 x 3 mm HSS Planer Blade Knives Inc Vat $34.42

DELL LATITUDE E5400 TOUCHPAD PLAMREST KEYBOARD SURROUND CN-0C944C C944C inc VAT $34.56

NEC IP1WW-DSLT IP1WW DSLT SLT IP Graphite Inc VAT /DEL $35.36

LG LKD-24 LCOB2 2 Port Analogue LKD 24 LCOB Inc VAT/DEL $35.36

OKI C5100 C5200 C5300 C5400 Toner Refill inc VAT BLACK $36.13

OKI C3100 C3200 High Yield Toner Refill inc VAT BLACK $36.13

JAGUAR XJ6 / X300 FRONT LOWER BALLJOINT (VAT INC) $36.15

Festo MS4-EM-1/8 | 12 mo. warranty | Free UK/EU Shipping | Price Inc UK VAT $36.78

Dell 1700 1700n 1710 Toner Refill inc new chip & VAT $37.70

OKI C5100 C5200 C5300 C5400 Toner Refill inc VAT $37.70

*GYMNASTICS LEOTARD*~Superb Quality Leotards in Striking Design Made in The UK $39.27

*GYMNASTICS LEOTARD*~Superb Quality Leotards in Striking Design Made in The UK $39.27

Bt Versatility ISDN2 Line Card NEW Inc VAT $39.29

Toshiba DKT2510F-SD Phone LCD DK 2510 F-SD Inc VAT/DEL $39.29

Panasonic KX-T7240E White DSS Console KX-T 7240 Inc VAT $39.29

Samsung DCS Compact 2SLI 2 Port Analog Ext Card Inc VAT $39.29

Siemens 6ES7193-4CA20-0AA0 | 12mo warranty | Free EU Shipping | Inc UK VAT $40.45

Siemens 6ES5420-8MA11 | 12 mo. warranty | Free UK/EU Shipping | Price Inc UK VAT $40.74

Siemens 6ES7972-0BA11-0XA0 | 12mo warranty | Free EU Shipping | Inc UK VAT $40.74

KREG Premium Face Clamp 6″ Inc Vat $40.55

NEW 2″ BSP FEMALE 45 DEGREE SWAGE INSERT 4 WIRE inc vat $41.24

Siemens 6ES7392-1BM01-0AA0 | 12mo warranty | Free EU Shipping | Inc UK VAT $41.68

Brother HL4040 HL 4070 TN 135 Toner Refill inc VAT JUMBO FILL $42.42

Datasenor S5-5-G12-00 | 12 mo. warranty | Free UK/EU Shipping | Price Inc UK VAT $43.38

DELL INSPIRON N5050 N5040 M5040 LAPTOP LEFT & RIGHT SPEAKER SPEAKERS inc VAT $43.99

US-Pro Cylinder Head Bolt Set 1/2″dr 8pc Inc Vat AT070 $47.07

Interquartz Gemini 9330 – Badged Splicecom PCS5 Inc VAT $47.15

KREG Corner Clamp 90* Inc Vat $47.43

BT Meridian M7324 In Grey 7324 Inc VAT $47.15

Avaya INDeX Expansion Link Cassette Card ELC Vat Inc $47.15

LG GDK-16 MFB Card (Refurbished) GDK 16 Vat Inc $47.15

Panasonic VB-D631UK White DSS (Refurb) D 631 Vat Inc $47.15

LG GDK-16 DTIB 4 Port Digital Ext Card GDK 16 Vat Inc $47.15

Avaya Index Card E-PRI-8 (Refurbished) 8 Inc Vat $47.15

Samsung KPDCS-AOM Console (Refurb) Grey VAT inc $47.15

Panasonic VB-D411 UK Black inc VAT 411 $47.15

Cash RegisteTill Rolls Sharp XE-A102 XEA102 Inc VAT&P&P $51.08

Till Rolls Casio 120CR 130CR 160CR 240CR Inc VAT & P&P $51.08

Siemens 6ES7193-4CA50-0AA0 | 12mo warranty | Free EU Shipping | Inc UK VAT $53.94

DCI XL Glass Extra large wine glass holds a whole bottle of wine….

Constructive Eating Utensil Set Make Eating Fun! Clamshell package contains one Fork Lift Fork, one Front Loader Spoon, and one Bull Dozer Pusher….

Fred and Friends Snack and Stack $9.34 Snack & Stack Cutlery SetThis fantastic cutlery set has stickle-brick handles so that they can easily be stacked and stored! Whether you are looking for a children’s cutlery set or something fun to eat your lunch with at work, our Snack & Stack knife, fork and spoon will make mealtimes child’s play!An ideal house warming, Birthday or Christmas gift, the Snack & Stack Cutlery Set is a great gift fo…

The Magic Christian $13.49 Wicked British satire stars Peter Sellers and Ringo Starr as the world’s richest man, Sir Guy Grand, and his adopted son. Together, they set out to prove the inherent greed of Mankind. Music by Badfinger and Paul McCartney. The cast includes Christopher Lee, Spike Milligan, Raquel Welch, and Yul Brynner in drag singing “Mad About the Boy.” 101 min. Standard; Soundtrack: English Dolby Digital stere…

Party Gummy Bear – Single $0.99 …

Das Beer Boot – Single $0.89 …

Vox Access Tool $24.33 Multitool by Boker Plus. For a long time we have been looking for a good multi-purpose prying tool for the keyring or pocket and couldn’t find anything satisfying. So we started our own project together with Jesper Voxnaes. The result is the Boker Plus VAT which not onlyes in handy for prying tasks but also works great as a bottle opener nail puller shackle opener and carabiner. A highlight of thi…

Franklin Tool Co Inc AL03US Autoloading Multi-Bit Screwdriver $19.99 1. Pull back handle 2. Select your desired bit 3. Push handle forward 4. Your bit is delivered instantly! Try it with our (BS0131) 31 piece bit set (UPC 852813000117) for $19.95 US Patent 6,601,483…

Waterpik VAT-343 Power Spray $13.35 Hand held with 3 spray mode options which include powerspray, massage, and powerspray and massage combination. Installs in minutes. Removable flow regulator. 5′ vinyl hose included. Chrome finish. Lifetime warranty….

Barbarians at the Gate $3.98 Insightful and humorous true-life look at corporate greed starring James Garner as F. Ross Johnson, the CEO of RJR/Nabisco, who plots to buy out the shareholders of his own company. Johnson appears to be heading for a big payday until scheming buyout king Henry Kravis (Jonathan Pryce) gets into the act. Peter Riegert, Joanna Cassidy also star. 107 min. Widescreen (Enhanced); Soundtracks: English D…