VAT RETURNS IN UK
VAT (Value Added Tax) is a process of registering your business with the HMRC (HM Revenue and Customs), it shows the difference between the amounts of VAT due on sales and the VAT reclaimed on purchase. It is a form of government tax that needs to be paid by every entrepreneur on quarterly basis in UK. You need to get registered with HMRC when your VAT taxable turnover is more than £85,000 . The VAT return is applicable f or the business which has been registered under HMRC.
The VAT payment needs to be done within 30 days of the submission of VAT returns. VAT returns are submitted every three months and are termed as the Accounting period. If the business has systematic bookkeeping records of all the accounts proclaimed by the organization then submission of VAT returns becomes easy. Tax cannot be reclaimed for the supplies done for private use or supplies made with other company or any recoverable items. The VAT submission needs to be on time and may lead to various problems.
If in case, the entrepreneur fails to submit the VAT returns on time, then a warning is issued by the HMRC and a surcharge liability notice is issued on the first late payment. If the businessman fails to submit his/her VAT returns for the second time then a 2% surcharge is added to the second installment of the VAT amount. The company needs to be responsible for the payment of VAT on time to reduce such illegal actions against them which may hinder their company’s image. Pay on time and make yourself safe!
We provide several services in UK which may help you to pay the VAT amount on time. If any business company purchases our services, we provide a VAT submission reminder through email. The company just needs to activate our service online and just stay busy with their works while we dedicatedly do our duty. We also provide you all the important registration deadlines that your company need to do in a certain period of time.
There are about 9 boxes which consist your selling and purchase details acquired by your company.
Box 1: VAT due on sales invoice.
Box 2: vat due on acquisition from European Union.
Box 3: total amount of Box 1 & 2.
Box 4: Addition of VAT on purchase and VAT on acquisition.
Box 5: If Box 3 is greater than Box 4, then the company needs to pay the desired VAT amount to HMRC.
Box 6: Total sales excluding VAT.
Box 7: Total purchases excluding VAT.
Box 8: Total value of goods sold to EU.
Box 9: Total value of goods bought from EU.