VAT Returns

HMRC VAT Return Services

A value-added tax (VAT) return determines the level of tax a company can expect to pay/recover. VAT returns are typically made to HMRC on a quarterly basis and are required to be paid by those organisations reaching a certain threshold in terms of income. The process of first registering for VAT can be arduous, while maintaining your VAT records and submitting the necessary returns every three months is stressful. With the risk of incurring penalties and additional fees for failing to submit and pay on-time, is therefore of the utmost importance that you’re able to manage the process with a minimum of fuss.

Our Ilford accountants are here to help with your VAT returns

Bookkeeping and the calculation of VAT returns aren’t necessarily the most straightforward tasks in the world and can certainly be time-consuming. At JR Accounts, we’re experts at dealing with such matters – which is good news for you because with our assistance and guidance, you’ll have more time to devote to those parts of your business that require the most attention. And that doesn’t include having to deal with VAT-related paperwork – because we’ll do it for you.

Our VAT returns services include: 

  • Registering your business for VAT with HMRC
  • VAT planning – ensuring your business is HMRC-compliant
  • The preparation and filing of VAT returns
  • Recommendations as to the most appropriate bookkeeping software for your business
  • The provision of bookkeeping tuition
  • Helping you with the implementation of management systems and procedures
  • Ensuring your business is compliant with Making Tax Digital (MTD) – introduced by the government in 2020, MTD is designed to streamline the process of tax administration
  • Evaluating the most cost-effective VAT scheme for your business
  • Option to tax – this covers land and properties pertaining to your business that you may wish to rent or sell

Contact our Ilford Accountants

To learn more about how we can assist with your VAT returns, please don’t hesitate to get in touch with us. Our fully trained and experienced team will be able to provide all the support you need for your business operations, managing your VAT processes from beginning to end. So, liaise with our taxation experts in Ilford at JR Accounts today.

VAT Return FAQs

A value-added tax (VAT) return calculates the amount of VAT a company needs to pay or recover. They are typically completed and submitted quarterly to HMRC, along with the payment.

VAT returns cover both the amount paid by a company in VAT and the amount charged on their own sales. An annual tax return, however, is based on the declared profits of the business over the course of its accounting year. VAT returns only need to be submitted by VAT registered companies, while all businesses need to file a yearly tax return.

VAT returns are usually submitted every quarter. However, you can choose to file monthly VAT returns if you prefer. Whichever time period you choose, the VAT return must be submitted alongside the necessary payment one month and seven days after the end of the VAT period.

If your VAT return is filed late or the payment doesn’t reach HMRC’s account on time, a ‘default’ is filed on your account. You’ll enter a surcharge period of 12 months, which means that should you default again you may face charges. The more defaults are filed on your account, the higher the charges.

If you complete your VAT filing on time but fail to pay by the deadline, you’ll be charged interest on any VAT that is owed.

Many businesses find it helpful to engage a local VAT accountant to take care of their VAT returns. The advantages of using an accountant are that you can be sure the correct figures are calculated, and the correct payments are submitted on time. You can also be sure that the right rate of VAT is being charged and that you’re using the best scheme for your business.

VAT returns are calculated by subtracting the amount of VAT you can reclaim on purchases from the amount of VAT due on sales. The resulting figure is what you owe. If the amount you reclaim is higher than the amount due on your sales, you’ll get a refund.

Any business that is VAT registered must submit periodic VAT returns. Your business must register for VAT if its annual turnover exceeds the VAT threshold, which is £85,000. If your turnover falls below this figure but you wish to register for VAT, you can do so voluntarily.

If the amount of VAT you reclaim on goods and services is higher than the amount that’s due on your sales, you should get a refund. Using a VAT accountant means you can be sure any refunds that are owed to you will be made, as they liaise with HMRC on your behalf.

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