VAT Returns

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:

  • The total sales made by the company broken down into the net figure and the VAT amount (the output VAT) and
  • The total purchases made by the company, again broken down into a net figure and the VAT amount (the input VAT)
Subtracting your company’s input VAT from its output VAT will result in a sum that is due to be paid to HMRC. If your input VAT is higher than your output VAT, the company will be due a refund from HMRC.

There are several options for filing your VAT Returns. Companies can:
  • File their quarterly VAT returns online via the HMRC VAT website
  • Use the services of an accountant to prepare a VAT return every three months
  • Order the 121 Company Formation Accounting Services package to have us professionally and seamlessly prepare and file your VAT Return
121 Company Formation is an experienced accounting firm that specializes in offering a range of services to start-ups, small and medium sized companies including offering sound business advice, assisting in running their operations in the most tax efficient way, preparing their year-end accounts , and preparing and filing their VAT Returns.


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:

  • Standard VAT accounting
  • Annual VAT accounting
  • Flat rate VAT
  • Flat accounting
  • VAT margin

VAT Returns

Purchase this service to:

Have 121 Company Formation prepare and file your company's VAT Return on your behalf.


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.


Each of our client’s requirements differ. Contact us for a quotation customized to suit your business needs.

Please contact our customer services team either by calling +44 (0)203 8932 121, WhatsApp +44 (0) 798 4046 470 or sending an email to

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