VAT Retail Schemes
It can be time-consuming and difficult to record the VAT on every individual sale in your accounts - as the many Bath based retail businesses dealing with the general public will know, especially those selling high quantities of low-cost items.
Recognising this, HMRC have recognised this fact and have set up several retail schemes that can simplify your VAT accounting and the entries on your VAT returns.
In essence, a retail scheme means that you do not have to record the VAT in each sale in your accounting records. Instead, you can calculate the value of your daily gross takings, identify the proportions of these at each appropriate VAT rate (zero, reduced or standard) and multiply each proportion by the appropriate VAT percentage. Your till may be able to may be able to do much of this work for you. The standard retail scheme applies to most retail businesses but there are special rules for caterers, florists and chemists.
If you would like to know more about any VAT retail schemes or about VAT generally, please contact us in our Bath office.