Basics About Filing VAT Return In UK

Posted by RobertPattinson on September 10th, 2019

If you are in business in the UK you must be aware of Value Added Tax (VAT). It is a transaction tax implemented whenever a value is added in the supply chain.
It is added at every step of the manufacturing of any product. The VAT is added to the sale price of the raw materials. It is added when good is sold to the wholesale dealers and then at the final step when a consumer buys a product.

Whenever you start a business in the UK, you should get it VAT registered. Make sure you do not miss the VAT return deadline in Bromley. You can reclaim all the paid VAT by filing a VAT return. Most of the business register with VAT quarterly. You need to submit a VAT return to HMRC every three months. It is the summary of what you owe to the government and what can be refunded.

Deadlines

The deadline for submitting VAT return is a month and 7 days from the end of your last VAT quarter. It is different for every business. You should keep the track of deadlines by consulting the VAT registration certificate now and then.
HMRC has made submission easier through online accounts. You just need to login to check all the deadlines, payments and other important information.

How To File VAT Return?

It is simple as you have to login in the online account and start filling up the form. There are 9 boxes which must be filled in the UK. Regulations and number of boxes vary for different countries of the European Union.

It is essential to fill out all boxes accurately and present the right information. It can get complex for a lot of people when all the components are collectively taken.
If you have done an inadvertent mistake, you can rectify the mistake in the next return. A voluntary disclosure can also help you to correct the mistake.

If you cannot manage to do it on your own you can hire a reputable accountancy firm for doing that. Certified tax agents are professionally trained people who can take care of all such matters for your business. It is crucial to the cash flow of business. What if you miss the return deadline? You should first understand default surcharge. 

Default Surcharge

When you miss the VAT return deadline or submit it after the deadline has passed, you will receive a default notice by HMRC. A default surcharge liability notice is issued when you are turning over more than £150,000 then your first occasion. This notice warns you that you must all returns on time for the next year or else you will face a penalty.

Assessment

When HMRC does not have your VAT return they will write about the explanation of surcharges and possibilities if you miss the deadline again. HMRC will estimate the surcharge which is a percentage of the tax paid late. This is called ‘assessment”. For instance, you will get 2% surcharge if you receive the 3rd default.

Penalties

If you fail to file VAT return after the successive surcharge notices, you will penalties. Following are the associated penalties.

1. If you want to file VAT return on paper then you must seek permission. Otherwise filing on paper can cost you £400. It is safe to file VAT return online in Bromley.

2. HMRC should be notified about too low assessments unless you want to pay 30% of the estimate.

3. You must have heard that genuine reasons for not filing a return are entertained but intentional inaccuracies can cost you 100% of tax.