VAT – Value Added Tax

0843 509 2500

Calls cost 7p per minute, plus your operator’s access charge. This is a call forwarding service which will connect you directly to the official helpline for all VAT enquiries.

Value Added Tax can be charged only if you register your business. It must then be charged for business sales, hiring and loaning goods, sale of business assets, commissions, items that are sold to employees, business goods that are used for personal reasons, gifts, bartering and part-exchange. HM Revenue and Customs is the governing body that regulates the collection of tax and support for those that need it the most. The VAT Contact Number above will put you in touch with the right department for any related questions or complaints.

Get Help with VAT

If you would like to speak to HMRC regarding this tax or for general enquires then contact HMRC VAT on the telephone listed above. This low-cost phone number will put you through to an advisor who will be able to direct you further.

The type of goods and services you offer will influence the tax rate. Major conditions that influence the rate are listed by HM Customs and they include:

  • The exact provider and buyer of the goods
  • The place where the goods are provided
  • The type of presentation of the goods for sale

If you want to register your business or you want answers to your questions then you can call HMRC VAT contact telephone number on the number above, or call the local rate option on 0300 200 3701 to get necessary information about the process.

What is VAT?

VAT is paid for certain types of services, food and drink, animal feed and animals, plants and seeds. It all comes down to the rating of the same. For example, it is higher for standard-rated food and drink like crisps, hot food, sports drinks and alcoholic drinks and so on. If you are interested in more information about any one of these things then go to the HMRC official webpage where you can find articles about each one of these subjects.

You have an obligation to register for VAT with HM Revenue and Customs if your business earns more than £82,000 a year. Once you register with HMRC, you will receive a VAT registration certificate that confirms your VAT number, the date when you have to submit your VAT return and payment and the effective date of registration.

Once the effective date of registration comes you will have responsibilities to charge the VAT for your goods, to pay VAT that is due to HMRC, to submit all VAT returns and to keep VAT records and a VAT account.

When do I have to start charging and paying VAT?

As a business, you must register to pay this tax before you hit the annual revenue threshold.

Registered businesses must then charge it on their goods and services and may reclaim any they’ve paid on business-related goods or services. If you are a VAT registered business you must report how much you have charged, and the amount you’ve paid. To do this you must complete a VAT return form quarterly – once every three months. If you are having any issues working out how much you must pay in VAT or how to report this to HMRC then contact VAT support to speak to an advisor. They will be able to help resolve any issues you may have.

It is possible to appoint an agent to deal with HMRC on your behalf by authorising an agent to handle your affairs on your behalf.

It is important that you account for all VAT on the full price of products sold, even if you receive goods or services instead of money or have not charged the customer any VAT because the full price is seen to include VAT. If for any reason you have charged more than you should have in VAT, you will need to pay this difference to HMRC. Again, if you have paid more then you should have, you will be able to get a full refund of the overpayment.

What if I’ve Over / Underpaid?

If you have paid too much, or haven’t paid enough, contact HMRC and let them know as soon as you can. They will be able to advise on the next steps and resolve the issue for you.

There are three different rates and it’s very important that you pay the right amount:

  • Standard rate: this includes most standard goods and services except for classed as reduced or zero-rated products and services
  • Reduced rate: this rate depends on the type of product and the circumstance of the sale. For example children’s car seats and domestic fuel or power are always charged at 5% and mobility aids for older people are only charged at 5% if they’re for someone over 60 and the goods are installed in their home
  • Zero rate: this rate includes goods and services that are still VAT taxable but the rate of VAT that you charge to the customer is 0%. This applies to certain products and services like books and newspapers, children’s clothes and shoes, motorcycle helmets and lots more

If you send products to Europe then you will need to record their VAT number and paperwork proving that the goods have been sent within the correct time limit. If you’re unsure about whether you should be charging or paying Value added Tax, then please get in touch with the VAT helpline using the number above for further advice.

You cannot charge VAT on ‘out of scope’ items that are exempt from charges. If you buy or sell an item that is ‘out of scope’ or exempt then you will still need to record this item on your VAT tax return. Items like insurance, postage stamps, health services provided by doctors and more, are all considered to be exempt from VAT. Companies that sell solely exempt products or services cannot register as a VAT company. Out of scope products or services mean items that are outside of the VAT tax scheme like goods or services you buy and use outside of the EU, statutory fees, goods you sell as part of a hobby and donations to a charity.

Is VAT payable if I supply my products or services abroad?

If you supply products or services to the EU then you do not need to charge VAT, the customer is responsible for paying their VAT in their own country.

If you would like to find out more about VAT or how you pay, contact HMRC VAT on the telephone number above and speak to an advisor. They will be able to assist and answer any questions you may have.