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Cheap accountancy for contractors in Birkenhead

HM Revenue & Customs (HMRC) is aware of the difficulties facing both fledgling and more established businesses with their VAT returns. They have devised some special schemes to help take the strain of VAT compliance off the shoulders of overstretched business owners. Cheap accountancy is available for contractors in and around Birkenhead – a great town to work in thanks to its strong links with Liverpool and Chester – and there are several schemes to consider.

The most constructive and useful schemes are:

Cash accounting – If the turnover of a business is within the given parameters, its owner can delay paying VAT until it have been paid by its customers. This is particularly attractive to businesses that have extended payment terms to their customers.

Flat rate scheme – Contractors who are able to join this scheme can apply one single percentage rate to their sales.

Yearly accounting – This involves negotiating an annual liability based on the preceding year’s figures and payment is by instalments. At the end of the year, a final return is made, whereby an adjustment is added meaning that any overpayments are refunded or any balance due is paid. This works in the same way as paying a set amount each month for your energy consumption which is then adjusted at the end of the year when a reading of your actual energy use is made.

VAT comprises a complicated regime of rules that can lead to huge problems if breached. Contractors must register their business for VAT if their turnover is over a certain threshold. Failure to adhere to the VAT rules can result in severe penalties and interest payments. In order to take full advantage of cheap accountancy for contractors in Birkenhead, a contactor can engage professional and reliable accountants.

With this in mind, Wainwrights Ltd can assist contractors with their VAT issues and set them on the right track to making the most of their ventures.