Services
VAT
VAT
At AAG, our team of VAT accountants can help you with everything from becoming VAT registered through to preparing and submitting your small business VAT returns to HMRC.
If you need VAT advice and guidance, we’re also here to support you. Whether you want to talk through the benefits and requirements for becoming VAT registered, the different VAT schemes available, or want to understand how VAT is applied to services or products in the UK and abroad, we can help.
Let us help remove the administrative burden and stress of filing your small business
VAT returns so that they’re submitted on time every time.
What is a VAT return?
If you’re a VAT registered business, you are required to submit a VAT return to HMRC.
In a nutshell, your VAT return will take the VAT you’ve charged on your invoices to customers and minus the VAT you can reclaim for your applicable business expenses.
Deadline for VAT returns?
The VAT return deadline is typically every quarter. The deadline for filing and payment is 1 month and 7 days after the end of each quarter.
Some businesses submit VAT returns and pay their VAT annually. If you are in this boat, your deadline is 2 months after the end of your VAT year. Do bear in mind that this can be different from your accounting year.
If you miss any deadlines or make any mistakes, it could result in a penalty being charged by HMRC as well as interest on any resulting late VAT payment. Naturally, we recommend you use our VAT return service to help stay on top of deadlines and ensure you pay the correct amount to HMRC.
Your VAT return is, therefore, a calculation of how much VAT you are required to pay or be reimbursed by HMRC.
Do I need to register for VAT?
There are two reasons to register for VAT, compulsory registration and voluntary registration
Compulsory Registration: If your company’s VAT taxable turnover exceeds the government’s set threshold, you are legally obligated to register for VAT.
Voluntary Registration: You can voluntarily register for VAT even if your turnover is below the government’s set threshold. Voluntary registration can be beneficial in situations such as reclaiming VAT on qualifying business purchases.
There are a number of reasons you may wish to voluntary register for VAT, for example, you can reclaim VAT on qualifying purchases made by your businesses.
It also makes sense for some businesses to register for VAT in advance of meeting the threshold requirements. For example, if your projected taxable turnover will meet the £85,000 within the next 30 days, or if your company wants to set pricing and accounting processes factoring for VAT.
How to register for VAT?
If your company’s VAT taxable turnover is greater than £85,000 you must register for VAT.
VAT registration for your business can be completed online. This applies to both compulsory VAT registration and voluntary VAT registration. If you appoint us as your accountant, we can register your business with HMRC. As your agent, we can also submit your VAT returns.
