When a company’s turnover (sales) reaches or exceeds a certain threshold, it must register for VAT with HMRC, charge VAT on any sales it makes, and submit a quarterly VAT return. The threshold is currently set at £85,000 for the 2020/21 financial year, but it does change annually.
How to Calculate VAT Return: A VAT return is completed based on the information contained in the company’s bookkeeping system. This includes:
There are five different accounting schemes. The due date is the same for each – one month and seven days following the end of the three month accounting period, i.e. the return for April, May and June must be filed by 6th August
121 Company Formation will be able to advise you which is the best VAT scheme for your company from:
If a company fails to file a VAT Return on time, HMRC automatically will send an Assessment of what your company owes. HMRC calculates this figure based on your previous VAT returns. The amount owed on the HMRC Assessment will be due immediately.
If your company has not filed a VAT Return and you do receive an Assessment, we would advise that you complete and file your outstanding VAT return immediately, together with any VAT payment that is due.
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