VAT Registration and Returns

Is it beneficial to register

We will advise on VAT registration; whether you need to or if it would be beneficial, and apply on your behalf. We complete VAT returns in good time to ensure you avoid any penalties.

Can I do my own VAT returns?

Yes, you can do your own VAT returns if you are a VAT-registered business in the UK. HM Revenue and Customs (HMRC) provides online tools and resources to help businesses prepare and submit their VAT returns. However, some businesses may prefer to seek assistance from an accountant or use accounting software to ensure accuracy and compliance.

What is the difference between VAT and VAT return?

VAT (Value Added Tax) is a consumption tax levied on the value added to goods and services at each stage of production or distribution. Businesses collect VAT on behalf of the government from their customers and pay it to HMRC. A VAT return, on the other hand, is a regular form that VAT-registered businesses submit to HMRC to report their VAT liabilities and claim any VAT they can reclaim on eligible purchases.

Who needs to do a VAT return?

VAT-registered businesses in the UK are required to submit VAT returns to HMRC. Businesses become eligible for VAT registration when their taxable turnover exceeds the current VAT registration threshold, which is subject to change. Once registered, they must submit regular VAT returns, usually on a quarterly basis, even if they have no VAT to pay or reclaim.

Can I submit a VAT return without an accountant?

Yes, businesses can submit their VAT returns without the assistance of an accountant. HMRC provides an online service called “Making Tax Digital for VAT” that allows businesses to submit their VAT returns electronically. Many businesses use accounting software compatible with HMRC’s system to simplify the process. However, by using our accountants here at Connolly Accountants, we ensure accuracy and compliance with VAT regulations.

Do HMRC check VAT returns?

Yes, HMRC does check VAT returns submitted by businesses. They conduct periodic reviews and audits to ensure that businesses are correctly calculating and reporting their VAT liabilities and reclaiming VAT appropriately. If HMRC identifies any discrepancies or errors, they may request additional information, conduct an inspection, or issue penalties for non-compliance.