VAT Courses helps to understand how to calculate VAT and manage VAT Accounts. The VAT started by replacing the purchase tax in the state of 1973, the UK government joined the European Economic Community to replace purchase tax to value-added tax on 1st April 1973.
A VAT is consumption tax placed on goods and service whenever VAT is valued based on the stage of the supply chain from the production to the point of sale. The calculation based on the amount of VAT user pays is the cost of the product, less any cost of materials used in the product that has already taxed.
Why do we need to pay VAT?
A VAT is the type of tax which are charged on value-added to the base product by the business. The VAT is paid by the firm at the additional value of the products so that no money is left or no revenue created without paying taxes. VAT – a crucial source of income for the government of the UK. The VAT is one of the essential taxes for the government – after income tax and national insurance, it is the vast source of income for the government.To calculate VAT having the gross amount you should divide the total amount by one +VAT percentage (i.e. if it is 15%, then you should divide by 1.15), then subtract the total amount, multiply by -1 and round to the closest value (including Eurocents).
There are three types of VAT rates of which applied to product and services.
- Standard Rate (currently 20%),
- Reduced Rate (now 5%),
- Zero Rate (0%, obviously).
Advantages of Value Added Tax (VAT)
Chances of Tax evasion are less compared to other taxes in VAT.Due to its catch up effect VAT minimizes tax evasion. The VAT is simple as compared to other indirect tax.
Few Advantages for the VAT are as follows:
- Tax charged on consumption-based which proves a stable revenue base.
- It imposed on all types of business
- Encourages savings.
- Raising tax funds on a large amount with a low tax rate.
- Reduced barriers like exports, under certain conditions.
- Helps in regulating better balance tax system.
Disadvantages of VAT tax
- Highly regressive.
- Increases spending
- Harmful for new business.
Benefits of being VAT registered-
- Advantage of being VAT registered is that Businesses can give the aspect of being more prominent because they have a VAT number.
- Another advantage is it gives you to reclaim VAT on most goods and services purchased from other business.
Who should register a business for VAT?
The VAT is compulsory only if your business turnover is around £85000 or more.
Even if company’s turnover is less den, the prescribed amount still company can register itself voluntarily and can provide benefits from the same.
The UK government charges 20 % standard VAT
Other three rates of VAT are as follows:
- Reduced Rate – 5%
- Zero Rate – 0%
- Exempt – N/A
Who can enrol for VAT courses?
- Bookkeeping Training is best for the one who desires to be a bookkeeper it is a perfect start for your career in the accounting industry.
- Students studying AAT, ACCA and other accounting qualification.
- New entrants into the Accounting sector.
- Candidates with abroad experience.
Jobs you can apply for after VAT courses
- Accounts clerks
- VAT Managers
- Tax Associates
Bookkeeper training does not require any formal academic qualification.
Workshops included in your VAT Courses
- Understanding the VAT Schemes
- Intermediate Excel Skills
- CIS computation and submissions
- The manual Bookkeeping training workshop
- Business Authorization and Internal controls
- Job Awareness and CV Sessions
- Mock Interview Sessions
Enrol with us
Located in London, mile end, Harrow and Birmingham. Feel free to call us on 02037908674 or 01212959988 where you can speak to one of our experienced Consultants or arrange a web demonstration to see which course is right for your business. Email us on email@example.com.