If you’re feeling a little worried about when the next VAT returns are due then don’t stress, we got you.
Your business needs to be registered for VAT if it is generating VAT taxable turnover of more than £85,000 a year.
From the date of registration your business must be charging VAT on all standard and reduced goods and services supplied within the UK. Every business must then submit VAT returns to HMRC on a monthly, quarterly or annual basis.
If the VAT collected is more than the VAT incurred, then the difference is paid by the business to HM Revenue & Customs. If the VAT incurred is more, HMRC will refund the difference.
Examples of what the VAT return records for the accounting period are as follows:
Usually, if you pay your VAT monthly or quarterly, the deadline for submitting your return and paying any VAT you owe is one calendar month and seven days after the end of the VAT period.
However, because of coronavirus (COVID-19), you can delay (defer) any VAT payments due between 20 March 2020 and 30 June 2020. If you choose to defer a VAT payment, you will have until 31 March 2021 to pay it.
Although HMRC are now offering small businesses to ‘defer’ VAT payments, it’s still important to be aware of the penalties.
HMRC will record a ‘default’ if:
You may enter a 12-month ‘surcharge period’ if you default. If you default again during this time:
If you submit a late return, you will not have to pay a surcharge if you:
HMRC will write to you explaining any surcharges you owe and what happens if you default again.
HMRC can charge you a penalty of up to:
To always meet deadlines and keep VAT returns as painless as possible, why not join Mazuma and leave it to us to sort out? We take away the hassle and make sure all the figures are correct. Get in touch with our team for a free no-obligation quote.
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