How does VAT affect contractors?

If your company sales are more than £85,000 you are required to register for VAT. We will do this as part of the initial set up cost of the company.

There are VAT schemes that can be used by small businesses to minimise the amount paid and CKS will advise on the scheme most appropriate to your company. However since April 2017 HMRc has changed the rules so that many contractors gain very little if any advantage to being involved in these. More often it is better for contractors to use the standard VAT system, although the difference in financial advantage are minimal.

VAT returns must be filed with HMRC every 3 months and we will complete and file these with HMRC using information we will ask you to provide to us.

Your client manager will be happy help you with any questions you have in these areas.

The time and costs related to preparing and filing VAT for your business are included within the monthly payments made to us.

Contact us to find out how we can help your business if you are affected by VAT.

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