VAT advice for Opticians

Specialist VAT advice for Opticians

Do you need support completing full cost apportionment calculations? Do you feel you’re paying too much VAT or that your standard rated proportion is too high? Do you need assistance completing your quarterly partial exemption calculations and VAT returns?

We understand the intricacies of ophthalmic accounts and know there are areas which require specialist treatment to ensure you’re not paying too little or too much VAT. As part of our tailored service to professionals in the optical industry, we provide specialist advice and support on VAT, including full cost apportionment and partial exemption calculations, as well as preparation of VAT returns.

Full cost apportionment calculations

The sale of spectacles is viewed as a mixed supply in terms of VAT, with the dispensing element and sight tests exempt from VAT whilst frames, lenses and accessories are standard rated VAT.

Calculating the proportion of sales deemed to be at the standard rate for each pair of spectacles sold presents a challenge for many opticians. In most cases this requires a full cost apportionment calculation. As specialist accountants for opticians, we are able to calculate the relevant proportion based on your figures and obtain agreement from HMRC on your behalf. We will ensure that all costs are included in the calculation to ensure we get the very best deal for you.

Partial exemption calculations and VAT returns

Another frustration many opticians experience is having to carry out partial exemption calculations each quarter in order to determine whether or not their exempt input VAT is within the de-minimus limits and recoverable in full.

Our team of expert ophthalmic accountants can relieve you of this pressure and carry out these calculations on your behalf, saving you time and allowing you to focus on running your business. We can also complete your quarterly VAT returns including partial exemption calculations and an annual adjustment calculation.