vat returns services

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

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.

VAT returns

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.

VAT deregistration

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).

our VAT return services

Registration

We will help you register your business for VAT with HMRC when your taxable turnover exceeds the registration threshold of £85,000. If you neither register for nor notify HMRC of your VAT registration by the deadline, then HMRC will charge you penalty for late registration. The penalty is a percentage of the VAT due from the date you should have registered to the date HMRC either received your notification of registration or became fully aware that you need to register. But there is still a minimum penalty charge of £50. 
 
We can also voluntarily register your business for VAT even though your taxable supplies are below the threshold. One of the benefits of voluntary registration is that you can reclaim the input VAT on your purchases.  You can also  avoid HMRC late registration penalty.
 
In both cases, you must charge VAT on your sales immediately after you are registered.

VAT RETURNs

In addition to registering your business for VAT, we will file your VAT returns with HMRC. Besides, we will inform you of the VAT due to or a repayment from HMRC so that you can pay your VAT bill by the deadline. Both the VAT filing and payments must be made electronically unless you are exempt. If it is a quarterly VAT return, then you must both file the return and pay your VAT due by the same deadline. Otherwise you will get a penalty for the late filing and interest for late payment. The VAT filing is continuous even if there is no VAT to pay or repayment (nil returns) unless you deregister your business from VAT. The submission only stops after your VAT registration is cancelled.

De-registration

We can also help you deregister your business from VAT. So if you expect that your taxable supplies will be below the deregistration threshold of £83,000, then you may voluntarily cancel your VAT registration.

However, in cases such as you cease trading, sell your business, stop making taxable supplies, join the VAT group or change the status of your business, you  must deregister from VAT.

After deregistering, you can no longer charge VAT on your sales and reclaim VAT on your purchases.

VAT return services: VAT schemes advice

standard scheme

under this scheme, you deduct VAT that you pay on your purchases (input VAT) from VAT that you charge your customers (output VAT). If your output VAT is higher, then you pay a VAT due to HMRC. However, you get a repayment when your output VAT is lower.

flat rate scheme (FRS)

for a flat rate scheme, you pay your VAT due to HMRC by multiplying your gross turnover by a fixed percentage. This % depends on the industry your business is in. You also cannot reclaim any input VAT unless it is a capital purchase of over £2,000 (including VAT). So it is very rare that you are due a repayment from HMRC under this scheme.

cash accounting scheme

in this case, you only account for and pay your output VAT to HMRC after you receive payments from your customers. And so is the input VAT reclaim. The main advantage is automatic bad debt relief. This is because if the customer does not pay you, then you will not pay the output tax to HMRC

looking for VAT return services?

Email MW Accounting Services today if you would like help with the VAT return services.