How You Can Streamline Your VAT Returns


February 23, 2019

VAT Return is the amount you have to pay to the HMRC. This also includes total sales and purchases for a period, and the amount of valued added tax you can claim and you owe. It should be noted; you will still be submitting VAT refund if there is no VAT claim or pay.

File Dating

When it comes to the filing dates for VAT, the end of the month, and that is after three months. That means, you will submit VAT Return after every three months and four times a year. With your online account, you will get information updates like when your VAT is due. You have to be careful about the time and make payment within the time.

Calculate VAT Return

Understanding how to calculate VAT is really important because you will be submitting it. It means the amount of VAT due on sales minus the amount on purchase that you claim. In this calculation the amount you will get is what you have to pay. In the otherwise case, you will get VAT refund.

Doing VAT Return

When it comes to how VAT works, it is really a complex matter. You can visit the official website where the government has provided all the details on VAT. Remember that there are different VAT rates like standard, reduced and zero rate. In some cases, you don’t have the right to claim VAT. Moreover, there can be penalties in case of errors and the amount charged is calculated by the standard method.

Submit VAT Return

We have shared how you can claim VAT refund and submit your VAT. There are few services that make it easy for the customers to help them submit their VAT. You can get any of the service. However, there is also an option to submit VAT online to HMRC. This is up to the users whatever option they choose; either do it online or through a service.

Make Tax Digital

The users have also been offered to use digital service and make their VAT return even simpler and easier – For instance; MTDfVAT. For this you will need to choose a software that can make your tax digital. There are a number of apps and tools available. But make sure the one you choose is good for your needs and makes things easy for you.

You may wonder what are the benefits of using a software for making tax digital. For most of the businesses, a software is the best choice for many reasons. The app or software allows the users to check their VAT return details, process and other things.

Moreover, the tool keeps records of your data, VAT returns, files as well as submissions. You will not have to calculate returns every year manually but it will do everything for you. There are no chances of mistakes while calculating and submitting VAT returns otherwise you will be fined.

References:

  1. https://www.adv-accountancy.co.uk/practice-news/making-tax-digital-for-vat-choosing-the-right-software/
  2. https://www.crunch.co.uk/knowledge/tax/the-easy-vat-return/
  3. https://www.gov.uk/guidance/vat-guide-notice-700
  4. https://www.kashflow.com/support/kb/running-vat-return/