Value Added Tax (VAT) is a tax that businesses must pay and potentially collect whilst buying/selling goods or services. When a business reaches the threshold of £85,000 turnover or more, it must register for VAT, add it to all products and services that are bought or sold and subsequently submit returns to HMRC on a quarterly basis.
It is important to understand when you’re liable for submitting VAT returns and the obligations around collecting VAT. By working with Accountants Glasgow, we can not only provide clear guidance and support, but we can prepare your VAT returns in a timely manner ensuring you always meet HMRC’s deadlines.
How is VAT calculated and when should it be paid?
When you submit a VAT return, often quarterly but can also be monthly or annually, this return includes details of the VAT collected and any VAT paid on expenses. Should the VAT collected be more than the amount paid then it is your responsibility to pay the difference to HMRC.
Should the VAT you have paid be greater than the amount you have collected, then you will be paid this difference by HMRC.
The typical charges for VAT are calculated at:
- 20% on most goods and services
- 5% on a range of products and services including heating, energy, health and more
- 0% on a range of products and services including health, publishing and children’s clothing.
When should it be paid?
The payment date for your VAT bill will depend on the VAT period you’re submitting your return for. Accountants Glasgow can provide you with more guidance on this topic but you should generally be told the deadlines by the government and it will be shown on the Government Gateway system.
As a general rule, the submission date will be the same as the payment date and these fall one month and seven days after the accounting period that you’re submitting a return for.
How Accountants Glasgow can help with your VAT returns
We believe that a business is most efficient when its owners can focus on doing what they do best, running that business. At Accountants Glasgow, we can take away the distraction, concern and pressure that comes with managing VAT returns and other accountancy requirements.
Our team of experts help individuals, SMEs and large corporations prepare all forms of accounting reports, including tax returns. We have the experience and expertise to ensure you always meet HMRC deadlines, understand your obligations and mitigate tax payments wherever possible.
If you’d like to know more about our tax returns service or any other accountancy service we provide then get in touch and speak with one of the team today.