Do you need our accountants to help prepare your VAT returns?
The VAT system has been a regular feature of our tax system since 1973. Since this time, VAT return services have become a lifeline for business owners seeking help in navigating what can be a confusing system for small businesses. But what exactly are VAT return services?
VAT is a tax chargeable on taxable supplies made in the UK by taxable persons. Credit is given for tax paid to other companies and the net balance is payable or reclaimable, normally on a quarterly basis. Accountant return services for VAT are available to help business owners accurately assess the proper tax.
Find out how CloudCo Accountancy Group can help you navigate this complex system when you enlist the assistance and advice of our VAT experts.
We can help you with the following VAT accounting services
- Prepare VAT returns
- Accurately account VAT returns in your book
- Submit VAT returns to HMRC in a timely manner
- Deal with HMRC on your behalf
- Partial exemption
- Pros and cons of a voluntary registration
- Timing and delaying payments of VAT returns
- The timing of compulsory registration
- The VAT on imports and exports
- Flat rate VAT schemes
- VAT control visits by customs and excise
How To Register for VAT
It is possible to register for VAT voluntarily provided you have a bona fide business, and it is also possible to register for VAT online
HMRC advises the time it takes to issue a VAT registration number which will, for the majority of submissions received using the online service, take three working days.
You should notify HMRC when:
- Taxable turnover for the past 12 months exceeds £85,000
- There are reasonable grounds for believing that your turnover for the next 30 days alone will exceed £85,000
In the first case, the notification must be within thirty days of the end of the relevant month. In the latter case, the notification must be within thirty days of the date on which grounds first existed.
It is important to monitor turnover because there is a penalty for late registration. This is in addition to the tax payable for the period when VAT should have been charged.
What Is a Vat Return Accountant?
Growing demands of HM Revenue and Customs (HMRC) and ever-changing regulations can make VAT compliance a challenging administration process. For any kind and size of business, preparing VAT returns in compliance with current legislation, accurately accounting for them in the book, and submitting those returns to HMRC can be a painful task.
At CloudCo Accountancy Group, we can help you manage your VAT returns and make certain that it is inline with the legal regulations. If your turnover is more than the VAT threshold, i.e. £85,000 in any 12-month period, you need to register your organisation for VAT. Once registered, you need to prepare and submit VAT returns to HMRC within the specific time period. Failure to do so can result in late filing penalties and interest.
We at, CloudCo Accountancy Group, have the industry’s best VAT return professionals on board who can help you in preparing all the VAT returns as per the law, accurately account them in the book, and submit them to HMRC – on time, every time.
VAT Return Services Explained
All VAT-registered businesses in the UK are required to submit their VAT tax returns online and also pay any VAT owed electronically. A VAT return must be filed online and submitted every quarter, along with any payment due to HMRC, no later than 7 days after the end of the month following the period-end.
Blank returns are made available online well before the period ends, so there is ample time to complete and file them by the due date. You should make returns and payments on time as there are hefty penalties for late filing and/or late payment.
It is preferable to register to pay by direct debit as that allows a further three working days for payment, and it reduces the risk that payments are overlooked. Businesses with regular repayments may make monthly returns to ease their cash flow.
Those using the Annual Accounting Scheme need to make only one return per year, which has to be submitted two months after the end of the scheme year. Payments of VAT under the annual accounting scheme are made monthly by direct debit. In order to ensure that you do not miss any deadlines and that your VAT tax return is submitted correctly, why not let CloudCo take care of your accounting paperwork.
MTD System
Additionally, there is also the online system known as Making Tax Digital (MTD). Under the Making Tax Digital system, businesses will be required to keep digital records. The content of these records reflects the existing requirements for VAT records, so the change in this respect is minimal. The mandatory change will apply to all businesses which are registered for VAT and with turnover in excess of the VAT registration threshold, so the new rules only apply to businesses that are mandatorily registered for VAT.
A VAT return will be submitted via the new online portal, and submission will be ‘end-to-end digital’, which means that once the digital records have been created, no re-keying of data is permitted.
At CloudCo we like to keep things simple. This is why we use the latest online accounting software for your day-to-day business activity. By building an accurate picture of your business’s VAT and tax data in real time, we can submit this directly to HMRC at the end of the tax year.
How Do You Calculate VAT?
Understanding VAT can be overwhelming to many as there are a number of things to consider.
However, the fundamental question that any supplier of goods or services should address is: do the goods or services I am recharging to my client/customer form part of the charge for my supply?
If the answer is ‘yes’, then the goods or services being recharged have the same VAT treatment as the main supply.
If the answer is ‘no’, then they fall into one of the following categories:
- Zero rated VAT – this includes socially or economically important items, e.g. exports, many food items (but not catering), books, newspapers, public transport, drugs on prescription, children’s clothing
- Exempt from VAT – this includes necessities such as insurance, postage, finance, education, and health
- Outside the scope of VAT – this includes donations, dividends, shares of profit compensation for losses, non-UK supplies
If you are unsure how to calculate your VAT, then contact us at CloudCo Accountancy Group, where our specialist VAT accountants can assist and advise.
