Value added tax (VAT) is a complex area of the UK tax system and therefore its comes as a burden on businesses which are supposed to collect VAT on behalf of UK Government. The scope of VAT is also not static its constantly widening. Business are required to be VAT registered if their turnover crosses VAT threshold (£85000 at the moment) however some business may chose to be VAT registered as it brings them certain benefits. In both cases VAT process will need meticulous bookkeeping arrangement to avoid last minute frustration and confusion.

Value added tax (VAT) is a complex area of the UK tax system and therefore its comes as a burden on businesses which are supposed to collect VAT on behalf of UK Government. The scope of VAT is also not static its constantly widening. Business are required to be VAT registered if their turnover crosses VAT threshold (£85000 at the moment) however some business may chose to be VAT registered as it brings them certain benefits. In both cases VAT process will need meticulous bookkeeping arrangement to avoid last minute frustration and confusion.