It is mandatory for a VAT registered business to provide accurate and timely VAT returns. Being a difficult and time consuming affair, this is not an easy task for business owners. The complicated calculations when go wrong can hit back with significant penalties. To keep away the stressful experience, it is alwaysadvisable to take the assistance of expert professionals who have relevant domain expertise.
Whether the VAT returns is for flat-rate scheme, retail, annual, cash accounting or for a one- off property project, VAT Returns should always be delivered on time without fail. Accurate VAT returns must be prepared before submitting to HMRC within the allotted time frame. Ensure that the returns are filed on time to avoid expensive fines for late filing. To maximize cash flow, business owners should seek for the advice of professionals to sign up on the correct VAT schemes.
Not all business require to be VAT registered, hence, it is also essential to understand whether or not a business requires to be registered for VAT.To identify if, the business requires to be registered for VAT, the following points must be followed-
- The VAT registration limit is currently set at £79,000 per year. Hence, if the taxable turnover of the business had reached this limit in the previous twelve months, then the business owner is legally obligated to register.
- If the business has reached this turnover figure yet, but is expected to within the next 30 days, then the business owner should register for VAT.
- You have purchased or taken over a company whose turnover has reached the registration limit, or is expected to so within the next month.
- You have purchased goods from other countries within the European Union to a value that exceeds the registration limit in one calendar year.