VAT Returns

Monthly, Quarterly or Annually..Standard, cash or Flat rate, we asses the most efficient return basis if applicable and prepare and submit to HMRC.

VAT is an indirect tax on consumer spending and charged on most goods and services supplied within the UK. It is suffered by the final consumer and collected by businesses on behalf of HM Revenue and Customs (HMRC).

There are 3 essentials needed before VAT can be charged.

A Taxable person, a taxable supply and supply being made in the course of business.

A Taxable person is one who is or should be registered for VAT, because they make taxable supplies. A person can be an individual or a legal person, such as a company.

A Taxable supply is everything which is not exempt or outside the scope of VAT. It includes sales and purchases of most goods or services.

For VAT to apply the taxable supply must be made in the course or furtherance of a Business carried on by a taxable person.

It is important to distinguish between input and output VAT:

·    Businesses pay input VAT on their purchases of goods and services.

·    Input VAT is reclaimable from HMRC.

·    Registered businesses charge output VAT on their sales of taxable goods and services.

·    Output VAT is payable to HMRC.

·    Every month or Quarter the input VAT is netted off and paid to or recovered from HMRC. The business therefore accounts to HMRC for VAT on the ‘Value added’ to their product.

When preparing VAT Returns, we look at the types of supply, supplies can be taxable, exempt or outside the scope of VAT. VAT is charged on taxable supplies but not on exempt supplies or supplies which are outside the scope of VAT.

It is therefore important to be able to correctly classify supplies in order to determine whether VAT should be charged. It is also important to correctly classify supplies because only taxable supplies are taken into account in determining whether a trader needs to register for VAT. Also input VAT related to exempt supplies is not recoverable.

Taxable supplies are charged to VAT at one of three rates:


-Reduced rate

-Standard rate

Before preparing a return, we look at if registration is compulsory or if not, if it is in the taxable persons best interest to register voluntary.

Once registered for VAT we deal with the consequences of registration, recovery of pre-registration input VAT, the deadlines for submission each period, maintaining records, different types of VAT Schemes which may be compulsory or available, any overseas aspects and potential deregistration at any point.

MTD eBook

To find out more about Making Tax digital order a free copy of our eBook on MTD and its impact on taxable persons. Or it is available to purchase on Amazon!

Manage account