As an entrepreneur or small business owner it’s super important to be aware of HM Revenue & Customs (HMRC’s) deadlines for VAT return submissions.
If you’re feeling a little worried about when the next VAT returns are due then don’t stress, we got you.
What is VAT return?
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:
- Your total sales and purchases
- The amount of VAT you owe
- The amount of VAT you can reclaim
- What your VAT refund or payment from HMRC is
When are the next VAT payments due?
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.
You can keep up to date with coronavirus updates here.