VAT Return - What is the purpose of a VAT Return?

A VAT Return is used to determine how much VAT a company should pay to, or how much VAT a company should be reimbursed by, HM Revenue and Customs (HMRC).A VAT Return calculates how much VAT you owe HMRC (or how much they owe you) by taking into consideration the following factors:Your total sales and purchases over a three-month accounting period are calculated as follows:The amount of VAT you owe on sales that you have made.When it comes to purchases made by your company, the amount of VAT you can claim is limited.The submission of VAT Returns is required by law for all VAT-registered firms, even if there is no VAT to pay or claim. Businesses who are not registered for VAT are not required to submit VAT Returns on a yearly basis.Detailed instructions on how to submit a VAT Return are provided below.The Making Tax Digital for VAT Scheme, administered by HMRC, went into force on April 1st, 2019. It mandated that VAT Returns be submitted through software that was authorised and approved by the HMRC's Making Tax Digital initiative.It is mandatory for all firms with a taxable turnover of more than £85,000 to register with the VAT authority. It is not yet necessary for you to comply with Making Tax Digital if your firm is not compelled to register for VAT but chooses to do so on your own initiative (until April 2022). Instead, you can continue to file VAT Returns manually using the internet.One calendar month and seven days after the conclusion of your accounting period is the deadline for submitting your VAT Return.When should I file a VAT Return and how often should I do so?

Tax returns will be submitted four times per year, one at the conclusion of each financial quarter, by the vast majority of enterprises.Businesses who are registered for the Annual VAT Accounting Scheme will only be required to file one VAT Return per year, rather than two. Businesses who are VAT-registered and have an expected taxable turnover of less than £1.35 million are eligible to participate in the initiative.Making a payment on your VAT billIf your VAT Return reveals that you owe more VAT than you are able to reclaim, you'll be required to pay the difference to the HM Revenue and Customs (HMRC). Paying your VAT bill can be done in a variety of ways, including via direct debit, online credit or debit card payment, or by standing order.If you owe money to HMRC, you only have a certain amount of time to pay your unpaid VAT payment. The deadline is the same as the deadline for submitting your VAT Return (1 calendar month and 7 days after the end of your account period). You should plan ahead of time to ensure that your payments arrive at HMRC on time.Refunds on VAT ReturnsIf your VAT Return reveals that you are entitled to a greater VAT refund than the amount you owe, HMRC will reimburse you the difference.In most cases, VAT reimbursements are authorised within 30 days of HMRC receiving your VAT Return. If HMRC has your bank account information, the refund will be deposited immediately into your account. If this is not the case, you will be mailed a check.Business owners around the United Kingdom can benefit from the services offered by Best Accountants in London, which include a wide range of cost-effective accounting and taxes services.

With our team of dedicated, qualified, and innovative tax accountants, you can be confident that we will provide you with the best and most affordable service possible at the most reasonable price possible.

You get tax refunds when you pay more assessments to your state government or the federal government, through finance retaining, for instance than your real duty obligation. For this situation, the government will write you a check for the sum overpa