A VAT return is a form you file with HMRC, usually four times a year, to show how much VAT you are due to pay them. If you're not registered for VAT, you won't file VAT returns.
The VAT return shows the calculation of the amount of VAT due on sales minus the amount of VAT reclaimable on purchases. The result is the amount payable to HMRC.
If the amount reclaimable on purchases is more than the amount due on sales, HMRC will give you the difference back!
Contact us to file your VAT return or you can file it yourself via HMRC website.
Only businesses can be registered for VAT; individual consumers can't.
If you are registered for VAT, you must charge VAT to your customers on applicable sales. You may also be able to reclaim VAT that you pay on your purchases. You then pay the VAT you've charged to your customers, less any VAT you can reclaim, over to HMRC.
Not all businesses have to register for VAT. If your annual VATable sales are below the limit set by HMRC, you can choose to register, in order to reclaim VAT on your costs.
You can identify whether you should register for VAT through your costs or through our book-keeping service advice.
Remember - In order to reclaim your VAT costs you will have to increase your sales price to the general public.
Our firm runs accounting software that automatically submits your VAT returns online to HMRC. Get set up with TVA Limited for hassle free returns.
There are 3 different rates of VAT that can be added to products. Which one applies depends on the goods and services, and how they’re used.
Most goods and services are charged at the standard rate of 20%. You should charge this rate unless the goods or services are classed as reduced or zero-rated.
You need to register for VAT if you go over the registration threshold (or expect to) - £90,000.
If your taxable turnover falls below £88,000 you can ask HM Revenue and Customs (HMRC) to cancel your registration.
