Can I do a VAT return online?
You may have just crossed the threshold for VAT registration
or you're planning to for a voluntary registration of your business and are
wondering what the registration process with value-added tax can mean for your
Although this will require a little more documentation (which Ember will handle for you), it also means that you
can claim the VAT you've incurred from any manufacturer or supplier that is VAT-registered. To claim this tax rebate, you'll have to make VAT returns regularly.
In this post, we'll go through the process of Filing VAT returns online, the information in the
return, and what you should do should you make mistakes in your return.
Can I do a VAT return online?
You can not only submit your taxes online but also under
Making Tax Digital for VAT (MTD for VAT) you must file an online VAT form
through government gateway accounts Government Gateway account is compulsory in
addition to filing an unofficial paper return and not confirming that you're
exempt, you could face with a penalty of as high as £400.
If you've registered your business to be VAT registered,
you'll have registered a Government Gateway user ID and will be issued a tax
registration code. Armed with these, you'll be able to submit your VAT return
There are two methods to achieve this: either recording VAT
data in spreadsheets, and then converting them into MTD-compatible information
using software for bridging, or selecting an all-in-one financial software that
will file your tax return directly to HM Revenue and Customs (HMRC) for you.
What is a VAT return?
A VAT tax return (HTML0) is a type of form which shows how
much VAT you owe or are due from HMRC.
As soon as HMRC accepts your VAT registration application
you'll need to add the correct amount of VAT on the products and services you
offer to your clients. With MTD you'll require MTD-compatible software to save
your VAT data in digital format using digital links. These will directly file
your VAT registration to HMRC for you.
What's included in the VAT return?
The VAT return you file should include:
You all-time purchases in addition to purchases over a
three-month accounting period. The total amount VAT you have to pay for
purchases sum in VAT you can claim for purchases that your company
When will my VAT return be due?
HMRC mandates that you submit your VAT return at least every
three years at the close of each financial period, even if there's no VAT due
or due back owing. If you are enrolled in a VAT scheme and need to file
returns, submission dates vary according to which scheme you belong to; we've
included more information below about each scheme but you will find your exact
filing and payment dates by using an online bank account.
Filing and paying your tax return within one calendar month
and seven days following the end of VAT time are the deadlines for filing and
making payments to HMRC, respectively. Be sure to leave enough time for cash to
reach their account (more information on this in our guide on paying VAT
Are You Struggling to Keep Up With Your VAT Obligations? If
that is the case for you, perhaps registering for one of the VAT schemes might
help ease the strain on cash flow without impacting their finances too much.
These programs offer assistance for VAT-registered entrepreneurs in paying
their tax bills without impacting cash flow significantly.
Under the VAT Flat-Rate Scheme, VAT-registered business
owners pay a set percentage of annual revenue to pay their VAT invoice,
deducting any discrepancies between what customers are charged for VAT and what
they owe HMRC. If your business is struggling to stay the top of the cash flows
of your business, then you may consider the VAT Flat Rate Scheme
beneficial as it allows you to VAT that is charged in this program is lower
than the standard 20% amount of VAT. But, you won't be able to claim back the
VAT you pay for purchases made from suppliers. You can sign up for the scheme on
your own when you first register your company to be VAT registered. To
join, you need to meet the following requirements:
If you're a VAT-registered business, you can expect your
VAT-taxable revenue of at least £150,000 excluding VAT within the next 12
TVA cash accounting Scheme
To determine the amount of VAT you're liable for You'll
usually need to calculate the difference between sales invoices and purchase
invoices - even if invoices you've sent to clients are waiting to be
paid. Under the Cash Accounting Scheme, things are a bit different. You can:
You must pay VAT on sales if your customers pay you. Reclaim
VAT on purchases once they have paid you to your vendor
Additionally, you don't have to report your input or out-tax
on your tax return until your customers have repaid you and you've paid your
Tax Annual Accounting Scheme
In the Annual Accounting Scheme, you only submit one VAT return
per year instead of the standard 4. This doesn't mean that you'll receive an
enormous tax bill after the year, with this scheme, you
can pay off the tax in quarterly or monthly instalments. A couple of other
benefits of the scheme are:
Additional payments are possible in the future if you can
pay for them. Doing this once per year will free up time to concentrate on your
business. You have two months instead of just one to file your balance payment
and tax return. You can make your accounts more efficient at the end of the
year by synchronising your VAT year with the tax year of your business.
In the program, HMRC calculates your owed amount on the
previous VAT returns or a rough estimate of first-timer to VAT. After they've
determined the amount you owe, they'll send you a notice outlining your VAT due
dates, and what the cost of each instalment will be. After filing your VAT tax
return after the year if you've paid more than
the amount due Tax authorities will offer you a refund of VAT in a matter of 10
working days. To participate in the program, tax-deductible sales for the
following twelve months must be lower than PS1.35m not including VAT.
What happens if I make mistakes in my tax return?
This is where double-checking your return before filing is
crucial. Any mistakes that you do not declare on your tax return can cause you
to pay the equivalent of 15 per cent of the tax amount. If you do make a mistake, however, if you're careless or have deliberate mistakes it can lead to the
possibility of a fine of the amount of 100 per cent of any tax not stated or
claimed too much. Ouch. To minimise the chance that you'll be fined, timing is
crucial. If you spot the error after you've filed your tax return, you can correct the mistake and take explicit note of the error and how
you've corrected it.
Be aware that if you're an owner of a VAT-registered
business it is mandatory to file an annual VAT return, even if you aren't
required to pay or get back any VAT except, of course, your business is VAT