VAT Returns
If your annual turnover exceeds the current VAT threshold then you will need to register with HMRC for VAT and complete and submit VAT returns to HMRC, usually quarterly. VAT Returns represent a major administrative burden for many business owners, but for small businesses with an annual turnover of £150,000 or less the Flat Rate Scheme may be the best option.
Under the Flat Rate Scheme a business pays a fixed, flat-rate percentage of gross turnover to determine how much VAT it must pay to HMRC quarterly. Although a small business using the scheme will still charge VAT as normal on all of the ‘supplies’ it makes, and issue VAT receipts to customers in the usual way, the quarterly VAT return should be more straightforward because it only requires the business to calculate its total sales and then apply a flat rate of VAT to the VAT-inclusive value.
Please get in touch with us if your business needs help with VAT. If you have a VAT inspection or some kind of issue or dispute, we can also help with that.