If you are an SME (small to medium size enterprise) and are running a new business, then we know how tight budgets are and how critical that bottom line is.
Often the first cutback is an accountant, which can be a costly mistake in the long-term. You want to become profitable as soon as possible. That means dedicating yourself 100% to your business and the last thing you need is a distraction.
Now one of the most frustrating tax burdens is VAT. It seems unfair that you don’t need to be profitable to have to pay VAT, you currently just have to be turning over £82,000 or more and you are legally obliged to register for VAT. As so many businesses are internet-based these days, we trade worldwide, and especially with our European neighbours.
However if you sell VAT registered goods to a similarly registered enterprise, for example one registered for TVA in France, then you have to complete an ESL form (European Countries Sales List). This all takes time and adds to the pressure, with no guarantees that once you have submitted all the forms, they won’t come bouncing back because you have misunderstood something. And what do you do if springtime usually sees an upturn in your business – spend time panicking over your annual tax return or dealing with business which brings in money? The tax return gets delayed and the fines start mounting, eating into your profits.
Then of course there are the VAT retail schemes. Yes, that’s right, there’s more than one VAT retail scheme, so you then have to work out which is applicable to your business. And what happens if you make the wrong choice?
Then of course you have to decide whether to join the flat-rate VAT scheme, which requires quarterly returns, or whether you want to do it annually along with your tax return. Now are you beginning to get the picture? Maybe it’s time, if nothing else, to talk to an accountant.
AT AK Tax we are Medway-based accountants who specialise in helping SMEs, not just locally but right across the country. We understand perfectly how cost is critical, and we have designed three levels of accounting services that you can pay by spreading a fixed and known cost over twelve smaller monthly payments so there are no unpleasant surprises.
As XERO accountants we also use the most up-to-date systems to simplify the accounting procedure, so reducing the cost to you. We don’t expect you to open your doors to us just from reading about us on our website, but we’d like to think that you would call us to discuss how we can save you money by releasing you to concentrate on what you do best, growing your business.