VAT Returns In Ipswich & Suffolk
What is a VAT Return?
VAT stands for Value Added Tax, which is added to most goods and services. All businesses must submit a VAT return to HM Revenue and Customs (HMRC) once every accounting period. The standard accounting period is typically every three months, or ‘financial quarter’.
VAT returns serve as a record of the following transactions during the accounting period:
- All sales and purchases
- The total amount of VAT payable to HMRC
- How much of this VAT you can reclaim
- The total VAT refund from HMRC
As this is an official record, you must still send a VAT return to HMRC if the total VAT payable or reclaimable is £0.
Who needs to pay VAT?
Most people will pay VAT on their purchases on a daily basis, as it is ‘value added’ onto many business sales, assets, commission, and even food and drink. Therefore, the short answer is everyone needs to pay VAT. However, not everyone gets the opportunity to claim this tax back, as we will explain below.
Every business is required to register for VAT with HMRC if they have an annual turnover of over £85,000, and those who earn less than this can also choose to register for VAT if they desire. Once you have registered for VAT, your business must charge clients and customers VAT on their purchases.
This means that at this point, you will need to start to keep detailed, accurate VAT records so that you can file your VAT return, keeping track of all the VAT you have charged consumers, and VAT you have been charged yourselves.
If the entity you have traded with also happens to be a VAT-registered business, you can then claim this VAT back from HMRC in your VAT return. Thus, being required to, or choosing to, register for VAT can reduce your running costs overall.
Why do I need a VAT Accountant?
If you don’t have experience in filing VAT returns, the process can be finicky, time consuming, and exhausting. It can be quite difficult to get your head around, especially as the requirements are near-constantly changing.
As it is a legal formality, one slip-up could lead you to overpay or underpay on your VAT. Even if this doesn’t seem like much to begin with, these costs can build up over time to a significant figure overall.
However, a VAT accountant has all the knowledge and experience necessary to help your business meet all the requirements and deadlines set out by HMRC. This means you can have the peace of mind of knowing that you won’t end up paying more than you need to HMRC, and also that HMRC cannot claim a hefty figure back due to incorrectly filed reports.
With ST Accountancy, the VAT return process is simple – we will take care of it all. We are committed to being completely transparent, always talking our client through every step of the way.
So, let’s take a look at how our VAT process works.
Firstly, our accountants will assist you with registering for VAT if you are not already. For businesses earning over £85,000 a year, this ensures their compliance with their legal obligations. For lower grossing SMEs, this allows them to benefit from the opportunity to claim back some of their VAT later down the line.
We can also assist with de-registering your company from VAT if the situation unfortunately arises.
We will then focus our time on efficiently and accurately preparing your VAT returns. If you already use our accounting service, this may already be one of the elements of preparing your statutory reports. We can also offer an independent VAT returns service for SMEs looking for a more affordable solution.
Once the returns are completed, we will file these with HMRC in compliance with their requirements and deadlines.
An important part of filing any financial documents is to review them thoroughly, spotting areas where things might be improved. With VAT returns, this includes making sure that you are aware of all partial exemptions and claims that you might be eligible for.
In doing so, our financial advisors will be able to offer tailored advice to your business to ensure that everything is running smoothly and cost effectively.
Why choose ST Accountancy for your VAT Return?
ST Accountancy consists of a team of knowledgeable and experienced accounting professionals that can provide first-class VAT returns and financial advice to SMEs. We are fully HMRC compliant, meaning you don’t have to worry about getting any nasty surprises.
All our services are affordable and environmentally friendly. We will work with you every step of the way, explaining everything to you in plain English – no financial jargon in sight.
If it’s a different service you require, such as statutory reporting in Ipswich, you can explore our full range of services below.
What our clients say
The service I have received has been nothing short of brilliant. From my initial meeting through to my monthly management reports the information that I have received has been invaluable for my business.
ST Accountancy take out the accountancy jargon and provide clear advice which helps me understand the requirements from HMRC and supports with my business planning.
I met with Sean to discuss his services and my company and he talked me through all the options and was so helpful. He wasn't trying to up-sell, only wanted to help for what I needed and is always on the other end of the phone/email if I need him.
They are very friendly with a professional “can do” attitude - Really couldn’t recommend them high enough.”