Our VAT return services
Our VAT return services offer you help with all aspects of Value Added Tax. They include:
- VAT registration
- VAT scheme advice and planning
- MTD-compliant VAT return preparation and submission
- Dealing with HMRC VAT visits and inspections
VAT registration
There are two main reasons why you would want to register for VAT.
Firstly, if your annual taxable turnover is more than £90,000, you have to!
Secondly, if your turnover is less than this, you can register voluntarily. It may sound odd to register for a tax if you don’t need to, but there are two good reasons you might do this:
- You could save money. If you pay out more VAT than you charge, the taxman actually pays you!
- Your business has more credibility. Larger clients and customers will often only deal with VAT-registered businesses.
Every business is different, so VAT registration isn’t for everyone. Our expert VAT accountants are happy to advise on the best route for you.
More info: How to register for VAT – a simple guide.
VAT scheme advice and planning
One of the key aspects of our VAT returns service is providing you with advice on which VAT scheme to join. Depending on the nature of your business, you could pay less tax by joining the most appropriate scheme. Our expert VAT planning team can advise you on the following VAT schemes:
- VAT Flat Rate Scheme. This allows you to pay VAT as a percentage of your gross turnover. In some cases, this can mean you pay significantly lower rates of VAT. However, your annual taxable turnover must be under £150,000. For more information see our blog post, VAT flat rate scheme explained.
- VAT Annual Accounting Scheme. This simplifies your VAT affairs by letting you submit one VAT return per year instead of four. However, it may not suit you if you regularly reclaim VAT – you’ll only get one refund annually. To qualify for this scheme, you need a yearly VAT taxable turnover of £1.35 million or less.
- VAT Cash Accounting Scheme. This allows you to pay VAT to HMRC when a client or customer pays you, rather than when you invoice them. This can improve your cashflow and simplify accounting for bad debts. You also need a turnover of under £1.35 million to join this scheme.
- A VAT margin scheme. This is open to firms that sell second hand goods such as antiques or collectibles. You pay VAT on the value you add to the goods you sell, rather than the full selling price. This can significantly lower the VAT you pay and help you remain competitive.
- One of three VAT retail schemes. Instead of calculating the VAT on every individual sale, you calculate the overall amount of VAT you owe to HMRC when filing your VAT return. This can benefit businesses with high volumes of low value sales.
Each of these schemes, along with other strategies that may result in a VAT saving, have benefits and potential drawbacks – so to make sure you’re enjoying the best VAT planning for your business, contact us today.
MTD compliant VAT return preparation and submission
Since April 2022, nearly all VAT-registered businesses have had to comply with Making Tax Digital for VAT (MTD for VAT). In a nutshell, this means you need to file your VAT returns electronically four times each year.
When you use THP’s VAT returns service, we help you prepare and submit MTD-compliant VAT returns. We do this by:
- Giving you access to MTD-compliant software. We can give you access to cloud accounting software such as FreeAgent or Xero, either free or at cost price.
- Helping you to register for Making Tax Digital for VAT. We need to do this for you after you have got compliant software.
- Preparing and submitting accurate quarterly VAT returns. This helps you to avoid expensive MTD for VAT penalties.
If you’d like to learn more about how our MTD-compliant VAT returns service works, please get in touch with our friendly team today.
Dealing with HMRC VAT visits and inspections
Did you know that HMRC officers can visit your business and inspect your VAT records? They’ll then go through your financial records to make sure you’re paying and reclaiming the correct amount of VAT.
HMRC will normally give you seven days’ notice. This short notice can be highly disruptive.
If you use our VAT returns service, you have peace of mind that our accountants can deal with HMRC on your behalf. If we have prepared your VAT returns, we can show HMRC how and why they are accurate. This can make all the difference between a simple visit and a full-blown inspection.
That said, if you want full peace of mind, we strongly recommend our Tax Investigation Fee Protection Service. This covers our fees up to £100,000 if HMRC launches an investigation into your VAT or other tax affairs.
Meet the THP VAT team
Mark Ingle
An owner-manager business specialist, Mark is adept at building relationships with all our clients, including those that use our VAT return services. “I like to help firms to grow and succeed and our business accounting services team has a lot to offer them.” Having worked for accountancy practices in London and Essex, Mark is experienced at supporting businesses of all sizes. For him, THP stands out because of its “local firm approach with the resources of a larger practice.”
Kirsty Demeza
With a portfolio that ranges from startups to companies with a £10 million turnover, Kirsty’s talent for working closely with her clients ensures her services remain in strong demand. “When you help a new business and watch it expand into new premises and secure big contracts, it’s a great feeling,” she says. As well as providing accounting services for business that range from tax planning and bookkeeping to audit and VAT return services, Kirsty’s part of THP’s sales team and closely involved in helping our trainees to develop their skills.
Li Ling
Li has been with THP for a number of years helping clients with their everyday taxing issues, including making sure their VAT returns are in tip-top condition. With an analytical mind, Li particularly enjoys problem solving. With tax and VAT planning as a key strength, Li enjoys answering the technical questions that clients bring to her every day.
Debbie West
Debbie takes a tailored approach to working with businesses and often deals with clients looking for tax and VAT planning advice. To do this, she likes to gain a thorough understanding of what clients do and provide a tailored service. “How I help clients depends on their aims. It could be tax efficient remuneration planning, making full use of expense claims, pension contributions, or something else,” she explains. Job satisfaction is important to her: “Knowing I have been thorough and produced an accurate result is key to providing excellent business accounting services.”
Debbie Jackson
Debbie Jackson has worked at THP since joining us at the beginning of her career. Specialising in accounts preparation, VAT return services and bookkeeping, Debbie prides herself on liaising with clients and team members to provide a good service. “I do enjoy talking with my clients,” explains Debbie. “Also getting the satisfaction of completing the accounts and the different variety of work.”
VAT returns service FAQs
If you use our VAT return services, we’ll submit your return on your behalf.
Yes, you can. However, we recommend you seek our advice first. If you do decide to go ahead with monthly returns, you’ll need to make an application to HMRC.
Most businesses submit their VAT returns every quarter using MTD-compliant software. However, there are exceptions such as firms that belong to the VAT Annual Accounting Scheme. We are happy to advise you on different schemes and how frequently you’ll need to make VAT returns.
If your VAT return is late, you receive penalty points. If you accumulate a certain number of these you can be fined. For fuller details, see our post Can’t pay VAT? HMRC has online payment plans.
If you bought goods before you registered for VAT, you can reclaim VAT over the preceding four years if you still have the goods or used them to make other goods you still have. You can claim back VAT spent on services up to six months before registration. Once you have registered for VAT, you will normally claim back any VAT each quarter.
VAT Returns News
Want to learn more about VAT Returns? If so, please browse our blog articles.
Reforms to VAT on food could lead to healthier, sustainable diets
VAT exempt goods and services – two more cautionary tales
VAT flat rate scheme explained
VAT One Stop Shop rules for EU B2C sales
VAT invoice requirements – don’t let your claims get rejected!
