VAT Return Account
Wakefield, West Yorkshire
Are you looking for VAT return account services in Wakefield? Contact our specialist team today.
Value Added Tax (VAT) is familiar to almost everyone. However, when it comes to businesses, the interpretation and knowledge of VAT should be deeper and exceed the knowledge that you simply "pay more". As a matter of fact, the way your business handles VAT makes the difference between whether the business is legally running or illegally running.
How To Submit Vat Return?
By definition, VAT is a form of consumption tax, which is tax imposed on services and goods on purchase as well other taxable supplies.
The consumer is ultimately responsible for paying VAT, hence it cannot be defined as tax imposed on personally owned businesses. VAT is paid to HMRC, but the actual payment has already been made by customers who purchased services and goods. Therefore, VAT becomes a form of indirect tax, and businesses are required to fully report to HMRC.
Within UK businesses, taxable areas include:
- Sales of your goods and/or services
- The sale of business assets
- Staff costs
- Business goods you use personally
- Product exchanges
- The hire or loan of your goods
What is VAT Threshold? Do I Need to Register my Business?
If your annual turnover exceeds Â£85,000, legally you are supposed to register for paying VAT. You will be needed to impose VAT for every part of goods or services which your business offers since you are only allowed to charge VAT if registered. The registration will also give you the power of reclaiming VAT on services and goods bought by the business you are running.
The VAT which your business charges is calculated based on the full value of the sale. The tax must be imposed on sales, whether you operate fully on exchange or if you work on part-exchange basis. In case you do not include the tax in the charges your customers pay; the HMRC assumes the price is inclusive.
Businesses registered for VAT must give a report of total VAT charged and received from the business by HMRC through filing a return every quarter. The filing is compulsory even when there is no VAT charged. If there are any VAT over-charges to the customers they must as well be submitted to the HRMC and also in case of paying more than charged, the business should also reclaim from HRMC.
Are tax returns the same as VAT returns?
No tax returns are not the same as value-added tax returns. The fundamental difference between the two is that tax returns are based upon your annually declared business profits, AKA net income. In contrast, VAT is based solely on transactions and is merely collected for the HMRC by you. VAT will also often differ on how regularly you pay it compared to tax. This is because when you register for VAT, you can schedule it to be filed either monthly, quarterly or yearly, depending on what payment scheme you decide to use for your business.
The distinction between these two is important because when you are filing for your annual tax returns, you have to calculate how much you owe based on your net income instead of any other figure. This is because VAT is not counted as your business's income and, as such, must be deducted from net income like any other expense before being handed off to the HRMC.
Why use an R A Lister Accountancy service to do your self-assessment VAT Returns?
Processing self-assessment VAT returns is a complex and daunting process. The amount of data you need to collect and process to file one is not the only difficulty. However, making even a small mistake when filling it out can have dire, potentially fraudulent consequences.
So to minimize the chances of such errors occurring, it is highly advisable to hire accountancy services to handle them. Accountancy services are perfectly suited to the task of filling out complex paperwork such as this, where a high level of financial competence and accuracy is required.
Knowing what VAT return scheme to use can also be difficult as they are suited to different types of businesses. Using our accountancy services, we can help you determine which scheme is most suited to your business's requirements.
Another reason to use our accountants is for advice when you are setting up VAT for the first time. There are many considerations you need to take into account when applying for VAT and to perform your first self-assessment VAT returns, such as the projected growth rate of your business. Our specialist tax returns accountants can give critical business advice on such issues that will make the whole process go a lot smoother.
What do VAT accountants do?
A VAT accountant's responsibilities are numerous and varied. Overall, they act as both an adviser to your business for VAT-related questions and an intermediary for the business to communicate with the HMRC.
Specifically, though VAT accountants are responsible for the following:
Reporting what VAT has been collected to the HMRC while ensuring compliance
Resolving any compliance or liability issues that occur as a result of VAT
Overseeing all VAT transactions to make sure they are completed in a correct manner
Liaising with the HMRC during any audits or inquiries
Calculation of business growth and its relation to VAT payments
Finding ways to reduce VAT costs on your business's transactions
Providing input and expert business advice on tax and VAT related issues
What is the deadline for self-assessment VAT returns?
While you used to be able to pay VAT by check, nowadays, you have to do it electronically through some form of online banking. This means that it's much faster and more reliable that payment will arrive at the HMRC on time as well. Another advantage of handling all of your tax returns electronically is that you can see your VAT return deadlines in your VAT account when you register.
The actual deadline for VAT returns depends on whether or not you are filing the tax monthly, quarterly, or annually. If you are filing for it quarterly, for example, then after the end of each accounting period, you will have 1 month and 7 days to submit the information required to the HMRC. The tax payment is typically due on the same deadline. It is best to pay this as early as possible; however, even with online banking, it can take several working days for transactions to go through for some banks.