Why You Need VAT Return Services
If you are a business operating in the UK, you may be entitled to money back on your VAT payments made throughout the year. Businesses or companies that have paid more than they need to can claim a VAT refund – which could bolster your funding by a heft amount.
If you are entitled to claim more VAT than the amount you owe, you may end up saving your business a lot of money in the long run. By completing a VAT return quarterly, you can help maintain your businesses finances and avoid surprise bills.
Let Us Take Care of Your VAT Returns
Handling VAT returns can become tiresome and fairly complicated if you don’t know exactly what you need to do. But why waste your own precious time when you can hire a service to submit your VAT return for you.
Not only do we know how to get it done both quickly and accurately, but it will also free up your schedule. This means you can work on more important tasks within your business, saving you both time and money!
We Assist VAT Registered Businesses
Legally, all businesses in the UK must register for VAT as most purchases will include a Value Added Tax. Here at Lumbview Accounts, we make it our goal to assist VAT registered businesses across the UK, offering an effective way to manage your businesses VAT returns.
We will compare the amount of VAT you owe to the amount you may be able to reclaim from HMRC to ensure you aren’t paying more than you need to be. You may even find that you have paid more than you need to, which can lead to a pretty impressive refund.
Spending time to work out exactly how much VAT you owe and how much you can reclaim can quickly become tiresome work. Get in touch with us and let our specialist team of financial experts submit your VAT return for you!
VAT Accounting Scheme – Let’s Make It Work For You
Flat Rate Accounting Scheme
One way of paying your VAT is through a flat rate accounting scheme. This is where you agree to pay a determined percentage of your business annual turnover to HMRC. Any difference between the VAT figure you pay HMRC and the amount of VAT your customers pay you can be reclaimed.
Cash Accounting Scheme
An alternative account scheme when it comes to VAT collected and VAT reclaimed is a cash accounting scheme. This is scheme will offer your business the means to manage your output tax based entirely on the sales you receive.
This differs from most accounting schemes as you don’t need to base your VAT payments on your company’s tax invoices. However, you may only claim a VAT return once your supplier has been paid.
Annual VAT Accounting Scheme
A great help to smaller businesses is the Annual VAT Accounting Scheme. Unlike your typical VAT accounting scheme, this will allow you to submit a VAT return once a year instead of once every 3 months.
Retail Accounting Scheme
Keeping track of VAT owed on each sale can quickly become confusing, especially if you make many sales. A retail accounting scheme essentially allows you to calculate the collective VAT on all sales when you complete a VAT return.
Domestic VAT reverse charge
The domestic VAT reverse charge was introduced in March 2021 and is used for most supplies of building and construction services. This has been implemented by HMRC to reduce “missing trader fraud.”
The charge applies to standard and reduced-rate VAT services for individuals or businesses who are registered for VAT in the UK and who also report under the Construction Industry Scheme. Under the reverse charge the customer is responsible for both the input and the output VAT, so they reclaim the VAT as usual but are also responsible for charging the VAT to themselves, rather than the supplier.
To quickly understand whether this might apply to you or your business:
As a seller
The reverse charge will apply if the following criteria are met:
- Your customer is registered for VAT in the UK
- Payment for the supply is reported within the Construction Industry Scheme (CIS)
- The services you supply are standard or reduced rated
- You’re not an employment business supplying either staff or workers, or both
- Your customer has not given written confirmation that they’re an end user or intermediary supplier
As a customer
The reverse charge will apply if the following criteria are met:
- Payment for the supply is reported within the Construction Industry Scheme (CIS)
- The supply is standard or reduced rated
- Are not hiring either staff or workers, or both
- You have not given written confirmation that you’re an end user or intermediary supplier
What Your Business Needs For Your VAT Returns
When filing your VAT returns, you will want to ensure you have everything you need to hand. Some of the most important details you will need to submit an accurate VAT return are:
- The overall amount of VAT that your business owes
- The overall amount of VAT that your business can reclaim
- The combined total of all your business purchases and sales
By providing these details to our highly experienced and dedicated team, we can ensure your business gets the VAT return it is entitled to.
Contact a Lumbview VAT Return Accountant
Whether you need help for your next VAT return or you just need accountant advice, our Manchester-based service is here to assist you.
Give us a call on 0161 793 9737, or send us a message using the contact form found on our site!
Get in touchFrequently asked questions
VAT Return Service FAQs
How Can I Calculate My VAT Return?
To figure out your VAT return, you will need to determine exactly how much VAT you owe and how much you can reclaim from HM revenue and customs.
This is done by adding up all your business sales and exempt sales, including VAT, and multiplying that number by your flat rate percentage.
Do I Need To Submit VAT Returns?
Most businesses in the UK will need to submit VAT returns at least once every 3 months (quarterly). This is so HMRC can check that you have paid the right amount of VAT.
If you have paid more than your business needs to, then you may get a substantial refund!
When Is The VAT Period?
When submitting a VAT return, there is a set period that the required data will relate to, known as the VAT period. In the UK this period is between the 1st January and the 31st March.
If you submit your VAT return online, be sure to regularly check your ‘Tax Digital’ or HMRC VAT online account to track any VAT payment you make.
How Many Times A Year Do I Need To Submit A VAT Return?
Ideally, you will want to submit a VAT return at least once every 3 months. However, you are only required to file a VAT return once a year, 2 months after the end of your businesses accounting period, if you operate within the UK.