VAT Return Services

VAT stands for value added tax and is payable on most goods and services.

Businesses that have a yearly turnover of more than £85,000 which is also known as the VAT registration threshold are usually required to register for VAT.

VAT registered businesses must add VAT on all their purchases and sales and report the figures to  HMRC on a VAT return.

Some businesses may be eligible for specialist VAT schemes such as the flat rate scheme, cash accounting scheme, annual accounting scheme, and retail schemes.

It’s important to keep in mind that VAT can be charged at different rates and that input VAT may not always be claimable.

Should I use an Accountant for my VAT Returns?

The treatment of VAT is governed by a set of rules and regulations which can be quite complex.

Making use of an accountant to help navigate the VAT system can bring your business valuable cost and time savings.

Keeping HMRC compliant records for VAT and filing your VAT returns without inaccuracies is vital to avoid HMRC penalties.

Non compliance for late VAT return submission or VAT payable can be severe with HMRC issuing automatic penalties for late filing and payment of any VAT due.

A VAT accountant has the knowledge your business needs and is familiar with the familiar with the procedures to follow when submitting your VAT Return, dealing with overpayments of VAT and other related tasks.

VAT Accountant advantages

The advantages of using an accountant to manage your VAT returns begin with the cost and time savings.

Hiring an accountant means you don’t need to get involved and can save you money by reducing the risk of you making costly mistakes on your VAT returns or record keeping.

Other benefits of using a VAT Accountant include:

• Guidance on choosing the right VAT scheme for your business.
• Maintenance of HMRC compliant records for VAT.
• Submit your VAT returns on or before your VAT return submission deadline.
• Alert you to your VAT payment date so you don’t miss the deadline for payment to HMRC.
• Provide MTD compliant VAT software so you don’t need to.
• Use HMRC compliant software under MTD for VAT.
• Support you if your business is chosen for a VAT investigation.
• Keeping you up to date on any VAT regulation changes which may effect your business.

Which VAT Scheme should I use?

There are different VAT schemes available to use depending on the type of products and services your business offers.

HMRC has a handful of VAT scheme options:

• VAT flat rate scheme.
• VAT Annual Accounting Scheme.
• VAT Cash Accounting Scheme.
• VAT margin scheme.
• VAT retail schemes.

The schemes are voluntary to join and aim to simplify the way some businesses manage VAT and report to HMRC.

It’s important to choose the right VAT scheme for your business so you are HMRC compliant and make use of any of the potential benefits.

Making Tax Digital for VAT

Making tax digital for VAT changed the way records needed to be kept and how you submit a VAT return to HMRC.

All records must be maintained digitally in line with HMRC MTD requirements which you can find out more about in our MTD for VAT guide.

HMRC no longer provides software to submit VAT returns online which means all VAT submissions must be made using compliant HMRC third party software.

VAT Return Software

HMRC can only accept VAT return submissions via third party software which is HMRC approved.

Before making tax digital for VAT HMRC provided free software to submit VAT returns but this has now changed due to the MTD provisions.

Most VAT software packages are not free meaning your business will incur a cost to use a third party VAT submission service.