VAT returns are the VAT information that is sent to HMRC. This is not the same as the VAT invoices you use for VAT on sales. VAT returns are due to HMRC every month and should be completed, sent and paid by the 20th of the following month.
Late payments will be subject to interest charges, and, in a worst-case scenario, the penalties could be pretty high.
When you complete a VAT return, you need to send off these documents to HMRC by the deadline.
If you have any queries about your VAT return, you should never hesitate to contact your accountant. If you find yourself in a situation where you are struggling to complete your VAT return, you should speak with an expert about the best course of action for your business.
Today, let’s take a closer look at how to prepare for your VAT returns. In this article, figure out whether you need to hire an accountant for this process or not. Here’s what you need to know:
Preparing VAT Returns
Whether you are an established business or a startup, paying your VAT and VAT returns is mandatory. If you don’t understand how important VAT is, let us give you a little overview of the VAT rates in the UK:
- Standard Rate – 20%
- Reduced Rate – 5%
- Zero Rate – 0%
Remember, VAT is a tax that is added to sales. So to pay your VAT, you need to make sure you collect it on your VAT invoices. It’s also important to remember that VAT on sales is completely different from VAT returns. You are required to pay VAT on sales. This is calculated on the price of your goods, plus your VAT.
On the other hand, VAT returns are the information you submit to HMRC every month. VAT returns are not the same as the VAT invoices you use in your business.
Choosing the Right VAT Scheme for Your Business
It’s crucial to manage your VAT correctly. To make sure you stay compliant with the current law, you need to choose a VAT scheme that suits your business.
Unfortunately, choosing the right VAT scheme for your business can be confusing and difficult. You should always hire an accountant to ensure that you choose the right one for your business.
When trading online, it can be difficult to choose the right VAT scheme for your business because there are several rules that you need to follow.
How an Accountant Can Help You
VAT is a very complicated topic. This is why you need to hire an accountant to help you understand the current VAT rules and make sure that you follow them correctly. Even when you are just starting, you need to choose the right VAT scheme for your business to stay compliant with the current law.
If you understand the importance of choosing the right VAT scheme, you should be aware that you also have to file your VAT returns correctly every month. If you have a business based online, you need to choose the right VAT scheme. If you are selling digital products, you will need to choose a special VAT scheme.
Choosing the right VAT scheme for your business is something you should consult with an accountant about. In other words, you need to seek professional help when completing your VAT returns.
Conclusion
It’s important to remember that your VAT returns should be submitted to HMRC by the deadline. If you don’t meet the deadline, you will receive a penalty. Late payments will be subject to interest charges, and, in a worst-case scenario, the penalties could be pretty high.
You should never hesitate to contact your accountant if you struggle to complete your VAT return. This should be an annual process, so you will be able to complete it easily, even if you are a complete beginner.
If you are looking for a reliable accountant, we can help you. Accountancy247 provides cost-effective, high-value solutions to meet every client’s needs regardless of the size of their business. Contact us today to learn more and get started!
