VAT returns

vat returns services

VAT Returns Services

MW Accounting Services provides VAT returns services to small businesses, both individuals and corporations, in Bracknell. We have years of experience in helping clients with their VAT. Our VAT returns services include VAT registration, VAT return submission, VAT deregistration, VAT schemes and general VAT advice. 

VAT registration & submission

VAT registration can be either compulsory or voluntary. So if your taxable supplies exceed the registration threshold (currently £85,000), then you must register your business for VAT (this is compulsory). You can, however, register your business for VAT voluntarily even though your taxable turnover is below the VAT registration threshold. After registering, you will receive a VAT certificate which will show your VAT number. 

And in addition to the 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 monthly or annually as well. Your VAT number is required when you file your VAT return as well as making your VAT payment to HMRC.

As part of our VAT returns services, we will help you register and submit your VAT return

VAT deregistration

Similarly, VAT deregistration can be either voluntary or compulsory too. So if your business does not need the registration because your taxable turnover is below the registration threshold, for example, then you can cancel your VAT registration (voluntary). However, in certain situations you must deregister your business from VAT (compulsory). This includes, for example, when you cease trading, join a VAT group or stop making taxable supplies (because you now only make exempt supplies).

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).

vat schemes

VAT returns services: VAT schemes 

Standard Rate

Under the Standard rate scheme, the VAT that you pay on your purchases (input VAT) is deducted from VAT you charge your customers (output VAT). If your output VAT is higher, then you pay your VAT due to HMRC. However, you will get a repayment if your output VAT is less than your input VAT.

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. If you are the FRS user, you 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. To be eligible for the FRS scheme, your taxable turnover in the next 12 months must be £150,000 or less.

Cash Accounting

in case of cash accounting scheme, 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 returns services?

Email MW Accounting Services today if you would like VAT returns services for your business, Our VAT returns services include:

  • VAT registration 
  • de-registration 
  • VAT returns submission
  • schemes of VAT
  • VAT advice