VAT Return Services

Filling Out Tax Form

Need to complete a VAT return? Traynor Accounting Cumbernauld and Glasgow provides a VAT return service for small and medium sized businesses throughout Scotland and the UK.

What are VAT Returns?

A VAT (Value Added Tax) return is a form businesses submit to HMRC that is used to calculate the amount of VAT that should be reimbursed or paid to HMRC.

VAT returns are usually submitted to HMRC every 3 months. However, VAT returns can also be submitted annually or monthly (where the business has frequent reclaims a monthly VAT return can provide faster refunds helping the business cash flow).

You need to pay VAT to HMRC electronically, i.e., via internet banking or direct debit.

Who has to Submit a VAT Return?

VAT Return Services Art

If your turnover is over £85,000 per year you must submit a VAT return.

However, there can be circumstances where it may be advantageous for your business to be VAT registered and you can voluntarily register for VAT even if your turnover is below £85,000 (call us to find out more about this!)

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What is Included in VAT Returns?

VAT Returns include:

  • the total sales/purchases

  • the total amount of VAT the business owes for the period

  • the total amount of VAT the business is due to be refunded

VAT Return Deadlines

To see your VAT Return and payment deadlines check your VAT online account.

Your VAT online account will tell you:

  • the deadline for your VAT returns

  • the payment deadline for your VAT

It is usually the same deadline for paying HMRC and submitting the return online (1 month and 7 days after the end of the accounting period). However, we always recommend our clients set up a direct debit. This gives an additional 3 to 5 days longer before the money is taken from your bank account (plus the payment is automatic and you’ll never forget to pay it!).

Surcharges

If HMRC does not receive your VAT return or payment for the VAT due on your return by the deadline HMRC record a ‘default’.

If you default, you may enter a 12 month ‘surcharge period’. If during this period you default again then:

  • an extra 12 months is added to the surcharge period

  • you might have to pay an additional amount as well as the VAT you owe

You will not have to pay a surcharge if you submit a late return if:

  • you have completely paid your VAT by the deadline

  • you don’t have any tax to pay

  • you are due a VAT refund

The applicable surcharge is calculated based on a percentage of the VAT amount outstanding for the VAT period. The surcharge rate rises each time you are in default again during the surcharge period.

Defaults within 12 months

1

2

3

4

5

6 or more

Surcharge if yearly turnover is below £150,000

No surcharge

No surcharge

2% (if this is below £400 then no surcharge)

5% (if this is below £400 then no surcharge)

10% or £30 (whatever one is more)

15% or £30 (whatever one is more)

Surcharge if annual turnover is £150,000 or more

No surcharge

2% (if this is below £400 then no surcharge)

5% (if this is below £400 then no surcharge)

10% or £30 (whatever one is more)

15% or £30 (whatever one is more)

15% or £30 (whatever one is more)

Penalties 

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If you send a return which includes a careless or deliberate inaccuracy, then HMRC can charge a penalty of up to 100% of any tax under-stated or over-claimed.

If you submit a paper VAT return HMRC can charge a penalty of up to £400 unless HMRC has informed you that you are exempt from submitting your return via the VAT online account or Making Tax Digital compatible software.

If HMRC sends you a VAT return that is too low and you do not inform them it is wrong within 30 days, then HMRC can charge you a penalty of up to 30% of your VAT return.

Making Tax Digital

Making Tax Digital

HMRC are now rolling out Making Tax Digital to all businesses. Traynor Accounting can therefore take this burden away from you using the latest Making Tax Digital software.

What are the Benefits of Getting Traynor Accounting to Complete your VAT Return?

There are many benefits of getting Traynor Accounting Cumbernauld and Glasgow to complete your VAT returns. These include:

Glasgow Accountant - VAT Return Service
Traynor Accounting Glasgow and Cumbernauld - VAT Return Service
  • Is it easy to make mistakes when completing a VAT return – the area of VAT is extremely complicated and mistakes can easily be made if you don’t have the expertise

  • Traynor Accounting are VAT experts and have excellent knowledge in this complicated area of tax and therefore can advise you accordingly

  • Gives you more time to focus on your businesses core needs

  • Traynor Accounting are a paperless accountancy practice so coming to us eliminates a paper return (saving the planet too!)

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To find out more about our VAT Return Services call us on 01236 222668 or 0141 280 8941 for your free accountant consultation (no obligation!)