Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

VAT Registration: Understanding the basics of VAT threshold

By Crowin Smith Subscribe to RSS | January 20th 2012 | Views:
loading
 
  



All the businesses in the UK become liable to charge VAT when it goes beyond the limit of £73000 per year. If a freelancer has registered for a VAT scheme, then they become liable to add VAT charges along with their regular fee that they take from their clients. This involves charging all the customers with VAT on every transaction made between them. This amount has to be paid along with the taxes every quarter. There are a few advantages of this tax which can be reclaimed back on the inputs of the employer. This tax allows freelancers to set a limit to the amount of tax that has to be paid by them at the end of the quarter. VAT Registration has to be used with complete understanding that they will also have added paper work along to submit at the end of each quarter. Cash accounting scheme demands all organizations to have a proper records of all their transactions that they have incurred with in a quarter and have proper accounting records for accruals. The paper work has to be prepared on quarterly bases and submitted to the customs before the end of the next month. If the registration has been done over the internet, then it can also be filed online.

Freelancers have to submit their VAT returns on time even if they are not able to pay off the whole amount in time. If they avoid paying this amount, then they can become a target for a tax audit. They have to remain consistent in paying these taxes in time because they can become a target for a tax authority if they become a persistent offender. VAT Registration is dependent on the actual turnover of the freelancer that they make per year, and it is an indirect tax that has to be paid by the employer who hires his services. They have to be filed in time so that people can reclaim refunds, and if freelancers have incurred expenses then they can also reclaim VAT by showing the proper documents. One thing a person has to realize that the size of your earnings have to be big enough to be worth reclaiming, else this tax can become more of a burden than a cure. Hence, all those people who intend to use this system for their benefit on a long term bases, have to understand the finer details and calculate the amount that they would end up saving if they use this system.

Crowin Smith - About Author:
For more information regarding VAT Registration, Please visit 123contracting.co.uk

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/business-articles/vat-registration-understanding-the-basics-of-vat-threshold.htm

Related Business Articles Subscribe to RSS

How the building companies work at the alteration and additions of a home?
Published by Mark Andysmith on December 8th 2011 | Business
Alteration and additions are the two most common things, preferred in any house when the inmates thi...
 
Why you need moving companies Saskatoon
Published by Richard on August 5th 2012 | Business
The convenience is a big issue when it comes to moving from one home to another and you need your be...
 
Easy moving with removal companies
Published by Glyn Jones Is A Renowned SEO Expert Working For Removal Companies Surrey. They Offer Quick And Safe Packaging Surrey Services And on May 12th 2012 | Business
Moving to a new place can be a quite trouble some job. There is need to hire the reputed moving comp...
 
Best companies for reallocation services by movers and packers Noida
Published by Kumari Ankita on July 21st 2012 | Business
Moving from one place to another brings new excitements and hope but along with it, it also brings h...
 
Medical transcription companies ensure privacy and security of patient data
Published by MTS Transcription Service on March 14th 2012 | Business
Medical transcription companies providing HIPAA compliant service ensure privacy and security of pat...
 
Accounting Outsourcing offers advantages for Small companies
Published by Amitaabh Saboo on January 6th 2012 | Business
Being someone who is running a small company, you are familiar with the way in which cost is able to...
 
Avail superlative realloctaion srevice by packers and movers companies
Published by Kumari Ankita on April 20th 2012 | Business
Moving from one place to another has become part of our life. In this hyper busy world, we are no lo...
 
Indianapolis moving companies in the sparking means!
Published by Ema Sis on June 15th 2012 | Business
The local movers in Indianapolis give commercial, corporate, long distance, local & auto transporter...
 
Advantages of Online TV antenna installation companies
Published by Tvconnectplus on December 14th 2011 | Business
There are a number of TV antenna installation companies that offer installation of complete antenna ...
 
About PCB prototype manufacturing companies
Published by Chris Adam on January 16th 2012 | Business
Printed Circuit Board or PCB manufacturing and assembling services are delivered by several manufact...
 
Understanding how energy companies are regulated
Published by Sean Burke on April 19th 2012 | Business
How Britain's energy market is regulated for the benefit of consumers....
 
Explore multi benefits of packing and moving companies
Published by Ankita Gupta on February 27th 2012 | Business
Packing and moving is very stressful task for most of us. Shifting from one place to another, make h...
 
Specialty Chemicals - Can give you the edge over competing truck companies
Published by Ezoilproducts on August 24th 2012 | Business
Trucking is a highly competitive industry where there is a constant battle to keep trucks on the roa...
 
Lumber exports of softwood lumber should target wooden packaging companies
Published by Interpro Forest Products on March 7th 2012 | Business
Canadian lumber exports are currently targeting the residential/industrial construction and interior...
 
Packing companies complete solutions for reallocation
Published by Kumari Ankita on February 14th 2012 | Business
There are many reallocations companies in India who are offering packing and moving services. These ...
 
Commercial Refrigeration is essential for companies who sell food and drinks
Published by James Blee on June 16th 2012 | Business
For any company that sells food or drinks, commercial refrigeration is a very important consideratio...
 
IS BIM worth implementing in medium sized companies?
Published by Macjohn on August 25th 2012 | Business
Implementation of Building Information Modeling has not been a major concern with large construction...
 
Plant hire companies in New Malden and Epsom
Published by Glyn Jones............ on April 18th 2012 | Business
For any construction company a lot of money is spent on hiring of plants. So it becomes very importa...
 
Gas boiler repair companies, London
Published by Kewinzork on January 11th 2012 | Business
When someone starts living in a house then he/she is very excited and wants to make sure that everyt...
 
Are the marketing fulfilment companies really worth their business?
Published by Diego Hall on December 2nd 2011 | Business
Only a marketing fulfilment company can ensure that all your marketing mails are not misplaced as sp...