VAT Returns Accountants in Cambridgeshire
Value added tax is one of the most complex and onerous tax regimes imposed on business
As a business owner, you have a responsibility to ensure that you meet all the required regulations and tax obligations, including submitting VAT returns if your profits exceed the VAT threshold or are voluntarily a VAT registered business.
At JMC Accountancy, we are specialists in VAT and can ensure that the correct processes are followed, and the complicated elements of VAT returns are as hassle-free as possible.
What is a VAT return?
A VAT return is a form you complete to inform HM Revenue and Customs of how much VAT you have charged and how much VAT you have paid to other businesses.
Most businesses are required to send a VAT return to HMRC every 3 months, as this is the accounting period.
The deadline for submitting online VAT returns is one calendar month and 7 days after the end of an accounting period.
Are VAT and tax the same thing?
VAT stands for Value Added Tax, a type of tax payable on sales of goods or services within the EU and the UK.
It is a tax that is paid by the consumer rather than the business, but there are different VAT rates that businesses must correctly apply.
VAT is an additional type of tax to Corporation Tax, Income Tax and National Insurance.
Why do we do a VAT return?
Businesses must submit a VAT return to show how much VAT to pay HMRC. Any VAT registered business must calculate its VAT liability and pay VAT accordingly.
Some VAT schemes can lead to a tax saving, and businesses may be due a VAT refund when they have charged customers less VAT than they have paid.
How do I prepare a VAT return?
Accurate tracking of VAT paid on business purchases, expenses, and total sales is essential for preparing error-free VAT returns. The easiest way to comply with your VAT responsibilities is to use a VAT accountant.
At JMC Accountancy, we use Xero, an online accounting software designed to streamline your financial processes. This revolutionary tool will give you complete peace of mind that your business is compliant with Making Tax Digital and that you are paying HMRC the correct amount on time, every time.
JMC Accountancy VAT returns service Cambridgeshire
JMC Accountancy is a team of experienced accountants and tax experts in Cambridgeshire who helps small businesses meet their VAT requirements.
VAT calculations can be complicated, and your records must be correct in case you have a VAT inspection. Submitting an incorrect VAT return could result in a penalty.
With different VAT schemes, such as the flat rate scheme to understand, using our expertise and VAT advice will help you to make the most cost-effective tax choices for your business. Our tax services can save you money and time while ensuring tax compliance.
The new government initiative – Making Tax Digital – requires VAT registered companies to keep digital records and file taxes using compatible software. Xero is one of the best software solutions to use for this.
We are Xero Certified accountants, and our VAT service includes helping businesses set up to do their VAT returns online. This incorporates digital features that can save time and streamline the VAT return process alongside other accounting tasks, such as claiming business expenses.
Xero helps businesses by calculating their VAT payments to HMRC and ensuring the VAT return is submitted by the required due date for the VAT period.
Xero also enables businesses to keep digital bookkeeping records to make the tax return process as straightforward as possible while providing you with an up-to-date view of your business finances.
Why Choose JMC Accountancy?
JMC Accountancy provides a VAT service that can help your small business to be as tax efficient as possible and comply with the government initiative to complete digital tax records and returns.
By using advanced accounting software such as Xero, we can advise on the best way to manage your business records, monitor your finances and ensure HMRC quarterly payments are made on time.
Whether you are using the flat rate VAT scheme or another VAT scheme, our tax expertise will simplify your VAT returns process, identify tax efficiencies and ensure any VAT refunds are claimed.
To find out more about with our VAT accountants can do for you, contact us today!
What is the formula for VAT?
Each VAT rate has a simple formula:
For a 5% VAT rate, you multiply the price by 1.05.
For a 20% VAT rate, you multiply the price by 1.20.
With Xero accounting software, all you need to do is select the correct tax rate, and Xero will perform all the VAT calculations for you, saving time and avoiding errors.
Do all businesses need to be VAT registered?
No, not all businesses need to be VAT registered. Businesses with a VAT taxable turnover of over £85,000 must be VAT registered and submit VAT returns.
Companies not meeting the tax threshold can still voluntarily register for VAT to reclaim any VAT paid on company purchases.
Can Self Employed be VAT registered?
Yes, if a self-employed person meets the tax threshold, they must be registered for VAT. Self-employed people who do not meet the threshold can voluntarily register for VAT.
Areas We Serve
Get in touch
Contact us today for a discovery call and see how we can help you run and grow your business.