It’s one of those must-do incredibly tedious tasks that always gets left to the last minute.
There is always something more important to do, right?
Wouldn’t it be great to sit back, chill and be confident that your VAT tax return is being taken care of?
Our expert team of qualified accountants can help.
Never again will you need to fill in another HMRC form.
At Oakstone Accountants, we know how challenging it can be to run a small business. That’s why our monthly accounting services subscription is designed to take some of the stress off your shoulders. We support start-ups, sole traders, freelancers, small businesses, and limited companies with their monthly accounts.
Our VAT returns service is just one of the many features included in this subscription.
One simple monthly fee, no hidden charges, and outstanding support from our team of qualified accountants.
Most businesses are aware that VAT registration becomes compulsory once their taxable turnover exceeds the threshold of £85,000 per year, or if it is expected to exceed this amount within the next 30 days. Certain businesses, such as those providing education, training, or specific medical services, may be exempt from registration. However, if registration is required, there are several VAT schemes available, and the right choice will depend on the nature of the business and how it operates.
VAT is based on invoice dates, not payments. You can deregister if supplies fall below £83,000, but must notify HMRC within 30 days. On registration, VAT is due on assets over £5,000 (e.g., buildings, vehicles, stock), though VAT on past supplies and bad debts can still be claimed.
The Cash Accounting Scheme lets businesses pay VAT only when payments are received or made, easing cash flow. If sales exceed £1.35m, they must switch to standard VAT accounting, though temporary excess may allow staying in the scheme. HMRC notification isn’t required.
This scheme is for businesses with turnover under £150,000. They charge standard VAT but pay a fixed percentage of gross sales, which varies by industry. It’s best for those with few VATable expenses. Businesses must leave if sales exceed £230,000, though they can apply to stay if projected sales are under £191,500.
This scheme bases VAT payments on the previous year’s liability, with a final return due two months after year end. It’s simple, flexible, and can be combined with flat rate or cash accounting.
In addition to standard VAT accounting, businesses can use Cash Accounting, Annual Accounting, Flat Rate, or Margin Schemes, where VAT is charged only on the profit margin rather than the full selling price.
As a business owner, we understand how busy you are. With so much to manage, the last thing you need is the stress of filing your VAT return incorrectly.
If mistakes are made or deadlines are missed, HMRC can place your company in ‘default’ on its VAT liabilities. While in default, your business may face penalties or surcharges.
Subcharges:
You could face a surcharge if HMRC doesn’t receive your VAT return on time, or if the full VAT payment hasn’t cleared into their account by the deadline.
Penalties:
HMRC can also issue you with a penalty for failing to submit your tax return by the deadline or by failing to disclose the required information. These can be:
-> 100% of any tax that is inaccurately recorded
-> 30% of an VAT return assessment, this is a sneaky one! If HMRC sends you a VAT return assessment that’s too low but you don’t tell them it’s wrong within 30 days, you’ll be the one who gets the penalty.
-> £400 for submitting a paper VAT Return unless HMRC has told you that you’re exempt from submitting your return online, then you’re in the clear.
Pretty daunting, isn’t it? Don’t worry – that’s exactly where we step in to help you handle penalties and surcharges with ease.
If your business is VAT registered, you must submit a VAT return to HMRC monthly, quarterly, or annually.
Your VAT return is calculated as: VAT charged on sales, VAT reclaimable on business expenses.
The completed return will show whether you owe HMRC or are due a refund. To add complexity, some goods and services are exempt from VAT.
You can complete your VAT return yourself if you have the time and expertise, or you can let Oakstone Accountants handle it for you. By leaving it to us, you’ll have peace of mind knowing it’s done accurately and on time, giving you more freedom to focus on growing your business.