VAT return services
MW Accounting Services provides VAT return services to small businesses, both individuals and corporations, in Bracknell. Our VAT return services include VAT registration, VAT return submission, VAT deregistration, VAT schemes and general VAT advice.
VAT registration can either be compulsory or voluntary. So if your taxable supplies exceed the VAT registration threshold (currently £85,000), then you must register your business for VAT. There will be penalty for late registration. So it will be helpful if you keep records of your taxable supplies from when you start trading.
You may, however, voluntarily register your business for VAT even though your taxable turnover is below the threshold. This will help prevent the late registration and hence the penalty. And you can reclaim VAT on your purchases too.
And in addition to VAT registration, you must also file your VAT returns, usually quarterly, with HMRC. Otherwise you risk getting penalties. But you can ask to file your VAT returns on a monthly or annually basis as well.
Similarly, VAT deregistration can either be voluntary or compulsory too. A voluntary deregistration includes cases such as taxable turnover below the registration threshold. However, VAT deregistration is compulsory and you must cancel your VAT registration if, for instance, you cease trading or sell your business.
Making Tax Digital VAT return (MTD)
From April 2019, HMRC launched an MTD VAT for businesses with turnover over £85,000. The MTD VAT is when you keep your VAT records digitally and file the VAT returns using only MTD-compatible software. And from April 2022, the MTD VAT is extended to all VAT-registered businesses (both those over and under the VAT threshold). So it means that you can only file the MTD VAT returns with HMRC. It also means that there will no longer be manual input of your VAT records as every transaction must be digitally linked to HMRC. Therefore, if you are VAT-registered, then you must file your VAT returns using commercial MTD-compatible software (and HMRC will stop providing their free VAT software too).