speaking, if your turnover for the previous 12 months exceeded
£68,000, or looks like it may do so, then you may need
to become VAT registered. After the registration process,
you will need to submit a quarterly VAT return to HM Revenue
and Customs (HMRC).
You pay VAT on goods and services that you buy into your business
i.e. an input tax. When VAT registered, you can charge VAT
on the goods and services you sell i.e. an output tax. The
standard VAT rate is currently 15%. Other rates depending
on the goods and services provided are reduced (5%), and zero
When you submit a VAT return, you are basically telling the
HMRC what the difference is between your input tax (how much
VAT you paid), and your out tax (how much VAT you charged).
In simple terms, if you paid more VAT than you charged, you
are due a refund. If you charged more VAT than you paid, then
you should submit payment to the HMRC for the difference with
your VAT return.
with many areas of life and business, things can sound a lot
easier than they actually are. Completing and submitting VAT
returns is not an easy process, particularly if you or your
business is seeking VAT refund. A good knowledge of the laws,
administrative procedures and processes, and the finer points
of VAT is so important.
For these and many other reasons it always pays to have an
expert on hand to take the potential pain and complexity out
of the process, and to save you valuable time and effort that
you you could be putting into the growth of your business.
Click here to contact us and
receive a FREE Tax Guide.