VAT Returns

VAT Returns
Your Questions Answered

Do all businesses have to be VAT Registered?

Not at all. If your turnover level is below £85,000 then you do have the choice whether to be VAT registered or not.

When must you register for VAT by law?

Once you reach the £85,000 threshold, then you are required by law to register for VAT with HM Revenue and Customs. If you fail to register your business within 30 days of reaching the threshold, you could then be liable for penalties.

Why would you volunteer to be VAT Registered if your turnover is under £85,000?

The main advantage of being VAT registered is that you are then able to reclaim VAT on all purchases made by your business. Being VAT registered also can help when working with other businesses as you tend to find they prefer to work with VAT registered businesses themselves. Having a VAT number displayed on your business stationery can also help your business profile and provide a professional image to your customers.

How do you register for VAT?

You can register directly for VAT with HM Revenue and Customs. However, due to the problems and issues associated with registration, you may find it easier to use an agent. As a firm of accountants who completes company and business formations, we have plenty of experience helping people to register for VAT, establishing which VAT scheme to register for and getting the process correctly done the first time.

The whole VAT registration process takes approximately 2-3 weeks before your VAT number is issued.

What happens after you have VAT Registered?

Once registered, you then must abide by the same rules as all other VAT registered businesses.

You start to charge VAT to your customers and issue VAT invoices accordingly. You must keep proper accounting records and record your transactions using software suitable for submitting VAT returns to HMRC electronically.

Why do you have to use accounting software to submit the VAT?

To be ‘MTD’ Making Tax Digital compliant.  HM Revenue and Customs introduced this new regime in April 2019 making it mandatory for businesses to submit their VAT returns using ‘MTD’ compliant accounting software. There are many different software alternatives to choose from and choosing the right software for you can be difficult. Discussing your accounting needs with a member of our team can help to identify which software would be most suitable to use.

Do you have to bookkeep and learn how to use accounting software?

Only if you wish to. You may like to be able to bookkeep your own finances and submit the VAT straight to HM Revenue and Customs. You may prefer not to get involved in the processing or bookkeeping side of the business at all and employ an accountant to provide this service for you. You may like to have a mix of the two. For e.g., you may wish to use the software to be able to raise your sales invoices and email them straight to customers, but not want to spend time processing the purchases, costs, and banking transactions. By having a discussion with us and maybe receive some training with us, we can tailor the accounting software and our service to suit your wishes so we all can work together to achieve the best outcome for you.

Why choose us?

Our team are on hand to offer full support and advice to ensure you are following the in-depth VAT regulations correctly. We can take care of the whole registration process if you wish us to, to allow you to focus on your business. When it comes to accounting software we do not use only one type. We discuss your requirements and wishes with you and we help you to choose from a range of accounting software. It is important to match you with the right software for you.

We are happy to be involved with your business as much as you like us to be. We can visit your premises to complete the service, or we complete it all at our office using our equipment and our resources. Again, we tailor our service to your wishes and requirements.

Why Choose Us - Hollingsworth & Co