VAT Return Accountants

Our qualified and experienced team of accountants can prepare & submit your VAT reports and returns on your behalf to ensure that you meet all your VAT responsibilities.

Whether you are a new or existing company or a large or small business, we offer a range of VAT services to suit all.

What is VAT?

VAT stands for Value Added Tax and is added onto the price of most goods and services you buy.

The majority of goods and services we buy has VAT added at 20%, however some like domestic power has 5% VAT rate added and other essential items such as food have no VAT added to their price.

VAT calculations are administered and collected by HM Revenue and Customs.

What items are exempt from VAT?

It’s no wonder VAT can be confusing. Some goods and services have VAT on them and some are VAT exempt which means no VAT is paid or charge.

Common exempt items include postal stamps, bank charges and interest, insurance, donations, salary payments etc.

Although these items are exempt from VAT, they still need to be recorded on the VAT return.

What is a VAT return?

VAT returns calculate how much VAT you owe to HMRC (or, if you’re lucky, how much they owe you!) by looking at how much VAT you’ve charged to your customers and how much you’ve paid to other businesses across a three-month accounting period.

If the amount reclaimable on purchases is more than the amount due on sales, HMRC will give you the difference back resulting in a VAT refund.

If you are a VAT registered business, you will normally need to submit your VAT return quarterly to HMRC, even if there’s no VAT to pay or reclaim.

Who needs to pay VAT?

As a business owner, once your sales hit a certain threshold (currently £85,000) in a 12 month rolling period, then you must register for VAT.

This is regardless of whether you are a limited company, small business or a sole trader. Once registered, you’ll need to charge VAT on your sales to your customers, and you can also reclaim VAT back on your purchases.

If your business has a turnover under £150,000, you have VAT scheme options available to you.

When do I need to pay VAT to HMRC?

You have 1 month and 7 days from the end of your VAT quarter to submit and pay your VAT liability to HMRC.

What types of VAT returns services does Quay Accountants offer?

At Quay Accountants, we can take care of your VAT obligations, making sure you comply with all the rules and regulations, whilst preparing and submitting your return well in time for the deadline.

Our VAT accountants also ensure you’re on the most beneficial VAT scheme to maximise your businesses cash flow.

Most VAT registered businesses file their VAT returns quarterly, but we also submit VAT returns annually or monthly for some clients.

What is Making Tax Digital?

HMRC introduced Making Tax Digital (or MTD for short) to encourage businesses to keep their tax records up to date and provide company accounts information to HM Revenue and Customs (HMRC).

MTD for VAT was first introduced in April 2019 for businesses and individuals over the VAT threshold (£85,000). These businesses are required to keep digital bookkeeping records for VAT purposes and submit them to HMRC on MTD compatible software such as Xero.

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VAT Returns - Frequently Asked Questions

VAT is a sales tax that is charged by VAT registered businesses or individuals on behalf of the government on the goods or services supplied to their customers. It is a requirement of UK law that all businesses who's turnover is above the VAT threshold (currently £85,000) register for VAT.

It is usually the supplier who is liable to pay the VAT, due on the goods or services supplied to their customer. In some cases, the customer is liable to pay the VAT.

Businesses pay their VAT liability to HMRC each quarter when they complete their VAT return.

The main difference between cash accounting and accrual accounting is the point at which VAT is calculated.

With the cash accounting method, you are calculating the VAT only when you have been paid by your customer, not when the invoice has been raised, similarly, VAT can only be reclaimed on purchases when suppliers pay their invoices.

The accrual basis calculates VAT on the basis of when the invoice was raised (for your customers) or issued (by your suppliers).

You can decide whether your VAT returns will be calculated on an accrual basis or cash basis.

Unless you're on the flat rate scheme, you work out VAT by deducting the amount of VAT you paid on your purchases by the amount of sales you collected on sales.

If the number is positive, you must pay the VAT due to HMRC. If the number is negative, it means you're due a VAT refund.

Why should you outsource bookkeeping services to Quay accountants?

By outsourcing your VAT returns, you can free up your time and rest assured that your data is correct and processed with someone with years of knowledge and experience, making sure your VAT obligations are met.

Our VAT accountants can advise you on anything to do with your VAT affairs. From helping with your VAT registration, to submitting your VAT return, paying HMRC and even working with you should your business undergo a VAT inspection.

If you are interested to know more about our VAT accounting services then contact us for a free consultation.

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