Value Added Tax (VAT)
You must register for VAT if you believe that your yearly turnover will reach over £85,000. This applies to individuals, partnerships, companies and charities. Once you register for VAT, you will normally be expected to submit a VAT return to the HMRC every 3 months.
What will a VAT return include?
A VAT return will include a collection of information from your accounting period. This includes but is not limited to, your total sales & purchases, the amount of VAT owed, the amount of VAT you can reclaim and the amount of VAT the HMRC owes you if applicable.
How do I submit a VAT Return?
You can submit your VAT online via the HMRC website. To do this you will need your VAT number which you will receive upon registration. If you have a large number of sales and purchases you may wish to employ someone to help you complete this, as this can be a time consuming task.
If you do not submit you VAT return on time or fail to allow enough time for your payment to reach their client account, the HMRC will record this as a ‘default’. If you default again during a 12 month period, you will enter a surcharge period where you will have to pay an additional fee on top of any VAT owed. It is important to schedule time to pay your VAT as the surcharge percentage will increase depending on the number of times you default in any one period.
If you do not submit your VAT return on time or fail to allow enough time for your payment to reach their client account, the HMRC may also issue you with a penalty. They can charge you 100% of any understated or over claimed tax that they deem to result from negligent or intentional inaccuracy.
How can we help?
At J S White & Co limited we can help take the hassle out of your VAT returns. We can assist you with every aspect of your VAT, including registering you with the HMRC, organising your receipts and determining what is eligible to reclaim. We will compile your figures and work out what exactly what is payable, leaving you with the simple task of making payment to the HMRC. There are no strict parameters with our VAT offering and we are happy to help as much or as little as you need. This could range from a VAT checking service, which involves checking your book keeping, to a total completion of your VAT returns.
Contact us today for more information on 0113 391 9990.