VAT payments on account threshold
Paul from Michael Paul Accountants details the increase in the thresholds for those companies making VAT payments on account.
Currently if you have an annual VAT liability of £2 million or more you must make interim payments on account at the end of the second and third months of each VAT quarter. You must include a balancing payment for the quarter (the quarterly liability less the payments on account made) with your VAT return. The level of interim payments that apply for one year is based on your VAT liability in the previous year.
If your annual liability currently falls below £1.6 million you can apply to stop making payments on account.
These thresholds will be increased from £1.6m and £2m to £1.8m and £2.3m to reflect the increase on 4 January 2011 of the standard rate of VAT. As appropriate, the thresholds will be increased on 1 June 2011 for quarterly reviews and on 1 December 2011 for annual reviews.
At Michael Paul Accountants Kettering, Corby, Northampton and Market Harborough are conveniently located near to our premises in Lamport although we have clients from all over the UK. We are a firm of Chartered Certified Accountants ensuring you receive a professional and competent service at all times. We specialise in small businesses, medium sized businesses, sole traders, partnerships and individuals who have to file a tax return.
If you have any queries regarding VAT or any other accounting or taxation matters or feel like you may need a change in accountant, maybe you are not getting the level of service you require or you feel the prices you are being charged are too high then please don’t hesitate to contact us.