HMRC VAT RETURNS ONLINE
Every three (3) months, a Value added tax (VAT) return is normally submitted to the HM Revenue and Customs (HMRC). A VAT return records the following things:
A VAT return needs to be submitted even though no VAT amount is due or needs to be reclaimed
Final VAT Returns
Once the VAT registration is cancelled, final VAT returns needs to be submitted. This task can be easy done online using the VAT online account. In case of insolvency, HMRC will send a paper version that needs to be completed if the registration is cancelled.
Before submitting a VAT return online, it is necessary to:
HMRC VAT ONLINE LOGIN
Log into www.tax.service.gov.uk and follow the instructions
HMRC VAT ONLINE SUBMISSION
VAT returns must be submitted online unless:
In case, a business is unable to submit the returns online, they need to get in touch with HMRC VAT enquires helpline to understand the procedure. DNS Accountants can help businesses with their VAT return questions and provide additional information such as allowances and tax codes. Our learned team of tax professionals can also help and support individuals with Self Assessment.
To submit a VAT return online, the business needs a VAT number and an online VAT account
Using accounting software
Businesses can either login to the online VAT account and complete the VAT return or file the return using an accounting software. Accounting software like Nomisma Solution allows the business the ease to submit their VAT returns directly to HMRC. The business should record the reference number as a proof.
Using accountants or agents
Businesses are required to authorize accountants like DNS Accountants to help them submit the VAT returns.
HMRC SUBMIT VAT RETURN ONLINE
A user only needs to complete the enrollment and registration process only once. Registration is required even if the free HMRC VAT online service is used or if the operations are carried out using commercially available software. Initially, when a user registers for the online VAT service, he / she are given a User ID and are required to generate a password. The user ID and password must be noted down and should be kept at a safe place as it will be required by the user each time they attempt to login for the online service. Upon completing the enrollment process, a user can set up an e-mail reminder for HMRC to prompt regarding the next online VAT return.
To use additional features, such as, changing the VAT registration details, of the online VAT service user need to activate or switch on this service. Once a user had signed up for VAT online, HMRC automatically send an activation PIN or activation code through postal service. The received PIN / CODE needs to be used only once within 28 calendar days from the date of issue.
To enroll and register for online Value added tax services, businesses need the keep track of the following information:
VAT HMRC ONLINE DEADLINE
Users can login into their online VAT account to check their VAT return and payment deadlines. The value added tax account provides details such the VAT return due date and date when the payment should clear HMRC’s account. Normally, the deadline for putting forward the online return and making the payment to HMRC is 1 calendar month and seven (7) days post the end of an accounting period. If a business uses an annual accounting scheme, the deadline will be different.
Annual Accounting Scheme
Businesses registered for VAT are required to submit their value added tax return four (4) times during a year. With the Annual Accounting Scheme:
When a business submits an advance VAT return, the business either:
The annual accounting scheme is not suitable for businesses if the business on a regular basis reclaims VAT because under this scheme the business will only be eligible for one (1) refund during a year. If a business estimates their VAT taxable turnover to be £1.35 million or less, it makes sense to opt for this scheme.
Businesses can also discuss with DNS Accountants to get advice on which scheme will be best suited for them.
HMRC ONLINE VAT RETURNS – SURCHARGES AND PENALTIES
HMRC considers the following activities as a default:
What will be the fine amount?
For the accounting period that is in default, surcharge is a percentage of the VAT amount outstanding on the due date. If the business defaults again in a surcharge period, the surcharge rate increases with every default. There is no charge for the first default and the business pays for the subsequent defaults as follows:
|Defaults inside 12 months||Surcharge if twelve-monthly turnover is under £150,000||Surcharge if twelve-monthly turnover is £150,000 or above|
|2nd||No surcharge||2% surcharge is payable if amount is less than £400|
|3rd||2% surcharge is payable if amount is less than £400||5% surcharge if payable if amount is less than £400|
|4th||5% surcharge is payable if amount is less than £400||10% surcharge or £30 (which-ever is higher)|
|5th||10% or £30 (whichever is higher)||15% or £30 (whichever is higher)|
|6 or more||15% or £30 (whichever is higher)||15% or £30 (whichever is higher)|
No surcharge is applicable if a late VAT return is submitted and:
HMRC can charge you a penalty of up to:
YOUR ACCOUNTING PARTNER – DNS ACCOUNTANTS
DNS Accountants has years of experience in helping businesses with online Value added tax return. Our team comprise of skillful ACA’s or Chartered Accountants (CA) and the firm takes pride in saying that we are very transparent and helpful to our clients & deliver incomparable client service. The firm’s learned team focuses on helping owner-managed businesses and sole traders with HMRC VAT online return filing and addressing any queries they have. DNS Accountants offers service:
DNS Accountants offers bookkeeping, accounts management, taxation & self assessment services to owner-managed-businesses or self employed individuals. For business owners and freelancers / contractors, it is difficult to keep pace with the ever changing government regulations and rules and DNS takes responsibility of all the accounting needs of the business