Vat Returns

VAT Returns Completed by Online Accountants

If you are VAT registered and need your VAT returns completing we can do these for you. We are experts in completing VAT returns. Let us take this hassle away from you, we can:

Provide VAT Tax Advice
Help you register for VAT
Complete your VAT Accounting
Prepare and file your Tax Return

In 2019, around 2.7 million businesses in the UK were registered for VAT, which is usually charged at 20% on the sale of goods and services.

Most VAT-registered firms need to keep digital records of these sales, and file monthly or quarterly VAT returns using digital software under the Making Tax Digital (MTD) regime.

Unless HMRC has agreed your business is exempt from MTD for VAT, non-compliance penalties will kick in for accounting periods starting in April 2020.

Additionally from April 2020, HMRC will be moving to a points-based penalties system to encourage good taxpayer behaviour.

Your business must register for VAT when your taxable turnover has gone over £85,000 in the previous 12 months or you expect turnover to go over this threshold in the next 30 days.

Your business’s VAT taxable turnover is the total of everything sold that is not exempt.

You can register voluntarily, while you can also voluntarily deregister for VAT if your taxable turnover is less than £83,000.

Schemes exist to simplify accounting for VAT, including the cash accounting scheme, annual accounting scheme, and the flat-rate scheme.

Key considerations

  • Could your business use one of the simplified accounting schemes?
  • Does your business need to be VAT-registered?
  • Are you entitled to claim VAT bad debt relief?
  • Are you accounting for VAT correctly on the fuel used for private motoring? Should you be accounting for the appropriate scale charge?

The process for working out the VAT treatment of delivery charges can be quite complex.

We have listed below some of the main issues to bear in mind when deciding whether or not VAT needs to be applied.

  • No charge for delivery. HMRC’s guidance is clear that if delivery is free, or the cost is built into the normal sales price, VAT is accounted for on the value of the goods based on the liability of the goods themselves. This applies whether or not delivery is required under the contract.
  • Goods on approval. Where you are delivering goods on approval this service is not classed as delivered goods. In this case, the delivery service is a separate VATable supply.
  • Additional charge for delivery.  There is a single supply of delivered goods for which the VAT liability is based on the VAT liability of the goods.
  • Delivery is not required. If delivery is not included in a contract to supply goods, then the delivery charge is liable to VAT at the standard rate irrespective of the VAT liability of the goods supplied. This assumes the delivery is within the UK.
  • Separate charge for packing. A separate packing service for which a charge is made will be standard-rated within the UK.
  • Food deliveries. The rules as to whether VAT is payable on delivery charges for food follows the VAT liability of the food. For example, the supply of hot takeaway food is usually standard-rated for VAT and a delivery charge would also be subject to VAT.

Where there is a mix of zero-rated and standard-rated items delivered, or where goods are delivered internationally, the situation can be more complex and further attention may be required…More 

Phone: 01235 250011
Fax: 01235 250022
28 The Quadrant, The Science Park Barton Lane, Abingdon, OX14 3YS

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