How To Submit A VAT Return Without Having To Hire An Accountant
VAT stands for Value Added Tax, and is a type of tax that is charged on goods at each stage of production. In the UK, VAT is currently 20%. Why do you need an accountant to submit your vat return? Well, there’s quite a lot to it! You’ll need to gather your records for all the business transactions that have taken place over the past six months. That might sound like a straightforward task, but if you’re not familiar with accounting software it can take hours to complete. On top of this, you’ll also need to enter all your financial data so that HMRC can calculate how much VAT you owe from the last six months!
Introduction to VAT
When it comes to Value-Added Tax (VAT), there are a few things you should know as a business owner in the United Kingdom. For starters, VAT is a tax that is applied to most goods and services that are sold in the UK. The current standard VAT rate is 20%, which means that for every pound your business brings in, you must pay 20 pence to the government.
As a business owner, it is your responsibility to submit a VAT return to HM Revenue & Customs (HMRC) on a quarterly basis. This can be done online through the HMRC website. The deadline for submitting your VAT return is the 10th day of the month following the end of each quarter. For example, if your quarter ends on March 31st, you will have until April 10th to submit your return.
If you are unsure about how to fill out your VAT return or do not have the time to do so, you can always hire an accountant or bookkeeper to help you with this task.
How to Submit a VAT Return Online
If you’re registered for VAT, you must file a VAT return with HM Revenue and Customs (HMRC) every 3 months. This return is a summary of the VAT you’ve charged on your sales and the VAT you’ve paid on your purchases.
You can file your vat return online with HMRC’s online service. You’ll need to have your Government Gateway user ID and password to hand.
Once you’ve logged in, select ‘Submit a VAT Return’ from the ‘Your account’ menu. On the next page, you’ll need to enter your Period End date and Total Sales value, then click ‘Continue’.
On the following page, you’ll be able to enter details of the VAT you’ve charged and paid. Once you’ve completed all the fields, click ‘Calculate my return’.
If everything looks correct, click ‘Submit return now’. You’ll then see a confirmation message telling you that your return has been submitted successfully.
What Is A Deduction?
A deduction is an expense that can be subtracted from your total income to reduce your tax liability. Common deductions include business expenses, home office expenses, and charitable donations.
What Is Overtime?
Assuming you are based in the UK, as a business owner, you will be required to submit a VAT return to HMRC every 3 months. This is unless your business has a turnover of less than £85,000, in which case you can apply for the Flat Rate Scheme.
If your business is registered for VAT, you must file a return even if you have no VAT to pay or reclaim.
The deadline for filing your return and paying any VAT due is one month and seven days after the end of the relevant quarter – so returns covering January to March must be submitted by 7 May, for example. However, if you’re new to VAT or have recently changed your accounting period, different deadlines may apply – so always check with HMRC.
If you’re late submitting your VAT return or paying the tax due, you’ll be charged interest and may also have to pay a penalty.
To avoid being charged interest or penalties, make sure you submit your return and pay any VAT due on time.
What Are The Tax Rates For Individuals?
The tax rates for individuals vary depending on the individual’s income and filing status. The most common tax rates are 10%, 15%, 25%, and 28%. The tax rate is applied to the individual’s taxable income, which is the total income less any deductions and exemptions.
For example, if an individual has a taxable income of $50,000 and is in the 25% tax bracket, their taxes would be calculated as follows:
£50,000 x 0.25 = £12,000 in taxes owed
Conclusion
If you’re looking to save money on your business taxes, one way to do so is to submit your VAT return without hiring an accountant. While it may seem like a daunting task, with a little bit of research and preparation, you can easily complete your VAT return on your own. Plus, by doing so, you’ll get a better understanding of your business finances and have more control over how your money is being spent.
