VAT Returns - Harmonix Accounting

For businesses with a turnover of £81,000 or more, VAT registration is compulsory. Due to the complexity of vat, some businesses may struggle to complete vat returns or under/over pay their liability, which may lead to fines and penalties.

There are some options you need to consider if registering for vat:

Quarterly or Annual Accounting

The standard way of reporting and paying vat is quarterly. Quarterly accounting means calculating how much vat you owe (or are owed) each quarter, making an internet return to HMRC and paying/receiving the balance.

hmrc

If you have taxable supplies under £1,350,000 you may apply for annual vat accounting. You can choose to make 3 quarterly or 9 monthly instalments to HMRC, with the balance calculated, reported and paid at your agreed vat year end. If you are reporting annually you should still keep up to date monthly records.

Using the ‘Flat-rate’ Scheme

You can apply for this scheme if your annual turnover is no more than £150,000 a year excluding vat. This scheme allows you to apply a single percentage to your turnover (inc vat) to calculate the vat due to HMRC. It was designed to help small businesses by reducing the work in recording and calculating vat. The percentage applied will depend on the type of your business - Read More about the recent changes to the Flat Rate Scheme

Voluntary Registration

You may wish to register your business for vat voluntarily, which may be beneficial when starting your business, to claim back vat paid.

"At Harmonix we can provide a complete VAT service for you, including training to do your VAT Returns yourself - Call Rob Waight On 02392 389 457 Today!"

Chartered Institute Of Management Accountants


Practising Certificate Holder

cima