VAT returns are considered a complex process that is also filled with a lot of burden. It is referred to as an indirect tax that the government charges on most of a business’s goods and services. If your business has a turnover of more than 85,000 euros, you will have to register for VAT. At the same time, you need to have an online VAT account registered with HMRC. This way, you will remain compliant with MTD for VAT returns.
The complex procedures for these returns are what make businesses suffer from confusion and other complexities. However, before you get started with the process, you should be aware that output VAT is charged on the sale of your business’s goods and services, and input VAT is something that you can claim on your purchases and the expenses that you have made for your business.
To ensure that there are no complexities during your VAT returns, it is recommended that you hire VAT return experts. But before you get to that part, wouldn’t you like to discover how to do it yourself? If yes, continue reading to gather some knowledge about the same.
How Can You Properly File a VAT Return?
To file VAT returns, you need to be prepared with a VAT number and a VAT online account. At the same time, you will need to use MTD-compliant commercial accounting software like QuickBooks or Xero. If you think that you can make good use of any of this software and get the returns filed in the right way, you can proceed further. But if you are confident about it, you might need to hire a specialised team of accountants. In this case, it’s better for you to avoid doing it all by yourself since you are not experienced, don’t have the expertise, and are not familiar with the software.
Three Schemes of VAT You Should Be Aware of
Choosing the right VAT schemes for your business’s good cash flow is what you should do as a responsible businessperson. But to do so, you need to learn about the schemes in detail. So, read the following pointers now:
- Standard VAT Accounting
This is the scheme where all your VAT is recorded based on when the payment or invoice for sale is issued. Through this scheme, you can file your VAT returns every quarter.
- Flat Rate VAT
This scheme is meant to provide you with incentives in order to simplify taxes. This way, it allows your business to charge 20% VAT on sales while paying HMRC at a lower rate.
- Cash Accounting
If your business has a turnover of more than 1.35 million euros in VAT-able revenue, you cannot use this scheme for your VAT returns. If you have purchased goods for your company but haven’t paid for them yet, you cannot claim VAT on them.
How Can an Accountant Help Successfully File VAT Returns?
There are higher chances of you making mistakes in filing VAT returns. So, if you do so, HMRC may send an investigation notice to you. If you want to avoid this, you should hire a specialised team of accountants for the job. They can help you reduce the rate of errors or mistakes when filing the returns. Simultaneously, they will make sure that your business is compliant with MTD and make use of efficient accounting software for the procedure.
In order to acquire the best team of accountants or VAT return professionals, you need to find the best VAT return service at all costs. This way, you can successfully submit your VAT returns and enjoy the biggest benefits down the line for your business.
VAT Returns Made Easier with Biz Accounting Solutions Ltd!
Our team of specialised accountants can undoubtedly be your ideal companion on your journey to successfully filing VAT returns. So, call us now at 0787 722 4964 to bring them on board without any further delay!