Take part in our new Family Business Survey and have your say! Click here
Our client is a sole trader with gross turnover just over the VAT registration limit. The business owner employs several staff and processes the payroll personally. Both these issues are typical of small businesses and the associated paperwork and management of payments of VAT and PAYE result in less time being able to be spent on focusing on the main activities of the business.
The introduction of RTI (Real Time Information) is also relevant and needs dealt with in the coming months.
What we did
Reviewed the VAT position and advised that the Flat Rate Scheme would be appropriate given their particular circumstances.
Advised that VAT should be prepared on an Annual Accounting basis.
These two pieces of advice helped greatly reduce the time spent dealing with VAT returns. This approach also had the added benefit of giving certainty over timing and amount of VAT due for the coming year whilst also reducing the VAT actually payable every year to HM Revenue & Customs by in excess of £1,000.
The saving afforded by the above advice gave the owner the opportunity to reduce their time spent on ‘paperwork’ by:
All content © 2015 Armstrong Watson. All Rights Reserved. Website by Simon Pighills.
Armstrong Watson LLP is a limited liability partnership registered in England and Wales, number OC415608. The registered office is 15 Victoria Place, Carlisle, CA1 1EW where a list of members is kept. Armstrong Watson Accountants, Business & Financial Advisers is a trading style of Armstrong Watson LLP. Armstrong Watson LLP is regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.
Armstrong Watson Audit Limited is registered to carry on audit work in the UK and Ireland by the Institute of Chartered Accountants in England and Wales. Registered as a limited company in England and Wales No. 8800970. Registered office: 15 Victoria Place, Carlisle, CA1 1EW
Armstrong Watson Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 542122. Registered as a limited company in England and Wales No. 7208672. Armstrong Watson Financial Planning & Wealth Management is a trading name of Armstrong Watson Financial Planning Limited. Registered Office: 15 Victoria Place, Carlisle, CA1 1EW