We are an accounting firm that has been operating for more than 30 years. As a result, our knowledge of the industry is without equal. It means we can provide the top services for VAT returns Camden has. This is a complex area of accountancy to say the least. However, our team is knowledgeable enough to keep up and meet all your specifications.
A look at VAT
The purpose of a value-added tax (VAT) Return is to figure out the amount of VAT a business needs to pay, or expects to recover, by HMRC. In the majority of instances you need to make payments quarterly.
When you initially start your business, comprehending the separate taxes that could apply to you is critical. It is not always mandatory to register for VAT. So, it is essential for you to know how/when you have to.
A VAT return is going to either reveal whether you are due a refund or how much you owe to HMRC. If there is a reclaimable amount that is more than the tax due on sales, HMRC is going to repay the difference to you.
Such returns are different from those annual tax returns owners of small limited companies must submit. It is the same for the self-employed and sole traders. Here, the tax relates to those profits that they declare.
When you buy services or items for your company, your supplier could charge you VAT. You must make a record of every purchase. If you do this and sell something to your clients, you need to know if this transaction has been categorised as a ‘taxable supply’. If it is, you have to charge VAT on your invoice, while maintaining accurate records of such charges.
Summing up what you paid against what you sold
A VAT Return sums up the amount you paid against when you sold. HMRC only asks that you send the summary numbers within your return. At the same time, you must preserve complete records in an MTD-compatible software of the real transactions. You do this just in case HMRC opens an investigation. After a business reaches £85,000 of taxable supplies, they need to register for VAT.
VAT gets recovered and charged on transactions, both expenditure and income. This differs from annual tax returns. They are based on those profits your business has over an accounting year. You submit VAT to HMRC periodically, utilising the schedule at the point of registration. This can be annually, quarterly, or monthly. You could be VAT registered when completing tax returns. If so, it is vital to use your net income figure. The reason is that VAT isn’t income for the company. It is money you collect on behalf of HMRC.
Then there are companies that register for VAT under the flat rate scheme (FRS). They need to report the gain or loss from being the FRS as part of their annual returns too.
VAT isn’t the easiest thing to navigate. It is clear that to produce and preserve accurate records you will need suitable software to keep things in check. It can also help to talk to an accountant.
Get the best help with VAT returns in Camden
At Brian G Lonis & Co, we help clients to understand the tax implications of their actions. We will work with you to plan ahead and manage your tax affairs correctly. You can get great services with us for excellent fees.
VAT compliance in particular is something that has become increasing difficult over the years. This is because regulations change frequently. By working with the leading company for VAT returns Camden has though, you will be fine. So, please let us know if you wish to work with us.