VAT Returns

• Turnover Analysis - We'll analyse your business activity and sales figures to determine if VAT registration is necessary, saving you unnecessary paperwork and fees.
• Exemptions and Deferrals - We'll explore exemption possibilities based on your specific industry or activities. For those nearing the threshold, we can discuss deferral options to buy you valuable time before registration.
• Clear Recommendations - Regardless of your circumstances, we'll present a transparent assessment of your VAT registration status, ensuring you understand the implications and can make informed decisions.

• Avoid the hassle of form filling! - We'll manage the application process for becoming VAT registered, filling out all the necessary forms with accuracy and precision. No confusing jargon or HMRC hurdles - we'll smooth the path for a seamless registration.
• HMRC Liaisons - We'll handle any communication with HMRC and ensure your application adheres to all regulations.
• Compliance from the Start - Our professional approach guarantees a compliant registration right from the outset, saving you potential headaches and future fines.

• Negotiating the pitfalls - The world of VAT schemes can be bewildering. We'll explore your options, explaining the intricacies of the Standard Scheme, Flat Rate Scheme, and Cash Accounting Scheme.
• Tailored Recommendations - We'll analyse your business model, income streams, and cash flow to recommend the most advantageous scheme for your unique circumstances. Maximising efficiency and minimising your VAT burden is our priority.
• Future-Proofing Your Choice - We consider not just your current situation but also your growth projections. Our recommended scheme will be flexible enough to adapt to your evolving business needs.

• Accurate Data Collection - We help you establish efficient record-keeping systems, ensuring all necessary information is captured for accurate return filing.
• Compliance Checks - We scrupulously review your transactions across a three month accounting period, ensuring adherence to VAT regulations and minimising the risk of errors and fines.
• VAT Calculations - We use this data to calculate how much VAT is due, so you only pay the exact amount that is owed on taxable sales, purchases or expenses.
• Timely Submission - We handle the entire filing process electronically and submit your VAT return online and on time, every time, avoiding late submission penalties.
• Paying HMRC Promptly - The due date for money owed to HMRC must be paid (and when you need to submit VAT returns) is usually one calendar month and seven days after the end of the VAT period. However, some businesses submit a VAT return annually, so the deadline is two months after the end of their VAT year, which can be different to their accounting year. We handle all of this for you, easing the pressure of having to keep up with the deadlines. Your VAT bill is processed by direct debit, which we will set up for you.
• VAT Refund - If the figures show that you are due a refund, we make sure that the funds are paid back into your account.

Our services go beyond this, and you can expect additional perks, such as:

• Ongoing Support. We're your VAT confidants, readily available to answer your questions, address concerns, and offer expert advice throughout the year.
• Proactive Insights. We analyse your VAT data, providing valuable insights into your business performance and identifying areas for cost optimisation and tax efficiency.
• Peace of Mind. We take the stress out of VAT, freeing you to focus on what you do best: running your business.

Don't Gamble with the Penalties!

Filing errors or missed deadlines can come at a hefty price. Late submission penalties can accumulate quickly, impacting your cash flow and reputation. HMRC's scrutiny of VAT compliance is ever-increasing, and non-compliance can lead to further financial penalties and even legal action.

Late filing

• Default Surcharge - 5% of the outstanding VAT (minimum £300) if a VAT return is filed more than a month late.
• Daily penalty - An additional 5% of the outstanding VAT for each day the return remains late after the first 30 days (up to a maximum of 15%).

Inaccuracy

• Accuracy penalty - Between 0% and 30% of the under-declared VAT depending on whether the error was careless or deliberate and not concealed, deliberate but not concealed, or deliberate and concealed.
• Failure to notify penalty - Up to 30% of the under-declared VAT if HMRC discovers the error before you do and you haven't taken reasonable steps to correct it.

Additional penalties

• Interest on late payments - HMRC charges interest on any unpaid VAT at the Bank of England base rate plus 3%.
• Civil penalties - In serious cases, HMRC can impose fines of up to £100,000.
• Filing a paper return – Unless you are eligible to do so, HMRC can fine you up to £400 for submitting a paper VAT return!

Important notes

These fines are applied at HMRC's discretion, and they may take mitigating factors into account, such as the severity of the error and your history of compliance. You can appeal against these if you believe they are unfair or incorrect, and we will fight your corner if we believe that HMRC is in the wrong.

VAT, or Value Added Tax, is a tax on consumer spending within the UK. Businesses with a taxable turnover above the VAT threshold must register for VAT.

To register for VAT in the UK, businesses must complete an application either online through the HMRC website or by mailing in a VAT1 form.

The current standard VAT rate in the UK is 20%, with reduced rates of 5% for certain goods and services, and a zero rate for others.

Submitting a VAT return online is done through the HMRC’s VAT online services, requiring businesses to log in and fill out their VAT return using the provided digital form.

VAT returns are due one month and seven days after the end of the VAT period, with quarterly and annual submission options available.

Businesses can claim VAT back on goods and services used exclusively for business purposes, including equipment, stock, and certain business expenses.