VAT Return

Vat Return Online

VAT is a tax chargeable on taxable supplies made in the UK by taxable persons. VAT return is collected on behalf of HM Revenue & Customs by businesses. A company pays VAT to HMRC by the net difference of what amount of VAT charged to customers and any VAT returns online they have paid on their own purchases. The standard rate of VAT is currently 20%.

A taxable person can be any individual, partnership or a limited company.

Types of supplies:

1. Exempt supplies:
There are some goods and services on which VAT is not charged, including necessities such as insurance, postage, education, and health. If all of the goods and services you sell are exempt, your business is exempt for vat purpose and you won’t be able to register for VAT. This means you are not authorized to reclaim any VAT paid on your business purchases.

2. Taxable supplies:
There are two types of taxable supplies

I. Zero rated: These are taxable supplies on which the current VAT rate is 0%. These include socially or economically important items, e.g. exports, most food, books, public transport, drugs on prescription, children’s clothing.
II. Standard rated: A standard-rated supply is a supply of goods or services, which is subject to VAT at the rate of 20%. The supply of all goods and services are taxable at the standard rate, unless it specifically falls under zero-rated or exempt category.

VAT Returns:

Companies usually submit their VAT Returns to HMRC 4 times a year. Registered business must file a vat return online even if no VAT to pay or reclaim.

A VAT return usually includes:

  • Total sales and purchases of a business during the reported period
  • Total amount of VAT owed to HMRC.
  • Total amount of VAT which a business can reclaim.
  • What the net refundable or payable amount is.
  • Late returns can attract default surcharge

Bad debt relief:

If you have made supplies to your customers and not been paid by the customer then you can claim bad debt relief for the goods or services that you have supplied if you meet all the conditions. You may also claim relief if the payment due to you was in money or in exchange of goods or services in a barter arrangement.

What are the conditions?

Conditions for claiming bad debt relief:

  • Vat has been accounted for in the return on the supplies and also you have paid it to HMRC
  • Business must not have sold the debt
  • Business must not have charged more than the normal price for the item.
  • Need Assistance?

We are here to accommodate you; WeAccountax has a team which can provide all the professional services you need to timely manage the affairs related to VAT returns. We will remind you about deadlines, prepare the VAT returns for you on time & file them to HMRC on your behalf to avoid any penalties or surcharges.

What will be the process?

We will review the bookkeeping done by you, we will pay particular attention to ensuring that all VAT you have paid on business expenses have been reclaimed. We will ensure you pay as little VAT as possible to HMRC.

Every return prepared by WeAccountax has to go in a systematic reviewing process, to ensure the best accurate results. After detailed review you will receive the final figures and detailed working for your confirmation before filing the VAT return to HMRC.

What if I get a VAT INSPECTION?

Another great benefit of using our services is we will act on your behalf in case of any inquiries or investigations raised by HMRC

How much does all this cost?

For preparing the VAT returns on your behalf, there would be a minor standard fee of £15 + VAT. However this may vary according to the complexity of nature of work. As always fee will be agreed up front before any work takes place.

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