The following article will hopefully inform you with everything you need to know about VAT returns.
What is a VAT return?
A VAT return is a form that you will file with HMRC usually four times a year which will show them how much VAT you are due to pay. You will only need to do this if you are VAT registered. To calculate how much VAT you pay or are owed they look at Your total sales and purchases across a three-month period, the amount of VAT you owe for sales and the amount of VAT you can reclaim for purchases made by your business. If you owe more VAT than you can reclaim then you will need to pay HMRC the difference, if this is not the case, then HMRC will refund the difference to you.
How to submit a VAT return?
You must submit a VAT return online unless for one of the following reasons you are unable to do so…
- You are unable to because of a disability, your age or the location of where you live.
- For religious reasons, you do not use a computer.
- Your business is subject to an insolvency procedure.
Here at Bedford Accountants we are experts in this field and be able to guide you every step of the way. As a starting business you have the choice on whether you wish to be VAT registered or not, if you choose not to be then, Bedford Accountants will fill out and submit your VAT return when the time comes to be registered.