VAT

DIY Accounting Cabsmart accounting package is for self employed taxi & van drivers that are NOT VAT REGISTERED.

VALUE ADDED TAX (VAT)

DIY Accounting Cabsmart accounting package is for self employed taxi & van drivers that are NOT VAT REGISTERED.

If you are registered for vat please visit DIY Accounting Self Employed which would be more suitable accounting packages. These packages do not compare vehicle running costs with mileage allowances as they are not specifically designed for taxi & van drivers but for general business activities.

DIY Accounting Self Employed being for vat registered business

If a sole trader is not vat registered then output value added tax is not added to the sales made and input value added tax cannot be claimed on purchases.

Quarterly vat returns do not have to be made and the self employed small business does not have to register with HM Revenue & Customs for vat purposes.

The vat threshold at which small businesses must seek a vat registration usually changes in the budget each March.

The vat threshold for small businesses was increased to £68,000 p.a. with effect from 1 May 2009 Sole traders with turnover that reaches the vat threshold should register for vat unless this sales turnover has been exceptional and not likely to be repeated on an ongoing basis.

Sole traders should note the legal position regarding vat that under the customs rules any business whose sales exceed the vat threshold, currently £68,000 p.a., are liable to pay vat at the standard vat rate on their sales turnover whether they register with HM Revenue & Customs for vat or not.

Value Added Tax (VAT)

Further guidance is available from the HM Revenue & Customs website vat portal at:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal

VAT is a tax on the final consumption of certain goods and services. HM Revenue & Customs Introduction to VAT guide provides a summary of the basic principles of VAT.

Businesses can register for vat online at: VAT Online Registration Service

HM Revenue & Custom Information and Guides

Introduction to VAT This is a summary of the most common VAT issues and a good place to start finding out how it affects you and your business.

Managing your VAT Includes guidance on setting up and keeping VAT records, details of common errors made, and help if you have payment problems. Information on Motor Trade issues is also available.

Registering for VAT Registering for VAT is compulsory for some companies and voluntary for others. Find out how your business fits the bill and how to get registered.

Special Schemes & Options HMCE have a range of special schemes and options to simplify VAT for small businesses. See if you qualify for a flat rate scheme or would prefer to spread your payments over fixed, monthly instalments