VAT return services
Ensuring accurate VAT treatment for every transaction.
Join Leicestershire SME’s using VAT returns
VAT return services – what we do
Whether you do your own bookkeeping or we do it for you, getting the correct VAT treatment of transactions is one of the biggest challenges clients face. Where we prepare the VAT returns you can relax in the knowledge your bookkeeping and VAT returns are being prepared by skilled, qualified staff with knowledge of the numerous complexities of the VAT legislation. Even if you manage your own bookkeeping, we will check your postings and amend as necessary to ensure your VAT returns are correct.
We will then prepare your VAT return for your approval and submit to HMRC. We will also advise you of the amount due for payment and how to pay this, or if a repayment is due we will advise how and when this will be paid. Unlike many other accountants we will create the VAT liability or repayment as a bill or invoice in Xero so we can check this has been paid or received to ensure payments are made in the correct timescales and if no, to be able to spot any cash flow issues before the become bigger problems.
What is VAT?
VAT is a tax on the “value added” to goods and services in the UK and is therefore a consumption tax. Businesses add VAT to their goods or services, reclaim VAT on the goods and services they incur and pay over the difference to HMRC, normally each quarter. All entities (this can be a company, partnership or individual) must register for VAT when their VAT taxable income exceeds £90,000 in a 12 month rolling period. Businesses can voluntarily register for VAT if their turnover does not meet this threshold.
VAT returns are typically filed every 3 months, however there are some exceptions to this, for example where businesses typically receive a repayment of VAT (their VAT reclaimed on goods and services exceeds the VAT charged) they can apply to submit VAT returns on a monthly basis.
Since April 2019 all VAT registered businesses have had to comply with Making Tax Digital for VAT. Under this legislation, all VAT registered businesses must keep digital records and file their VAT returns through MTD compatible software. For some clients this was a huge change, however as a modern, forward thinking business, we were able to get our clients prepared for MTD several years prior to this giving them the full confidence their VAT was compliant well ahead of this deadline, with all clients finding the systems we helped put in place were a huge benefit to their businesses.
Why we work with Xero for VAT returns
With Xero, we are confident that we can easily manage our clients VAT affairs. With the ability to simply produce VAT returns, check any transactions and send VAT returns for client approval, we are able to easily manage any clients VAT returns. We are also easily able to adjust any transactions where clients have made mistakes in the VAT treatment, in bulk if needed, to quickly, easily and accurately manage all clients VAT returns.
READY TO CHAT?
You can contact us via:
Pera Business Park
Nottingham Road
Melton Mowbray
LE13 0PB
HOW DO WE HELP?
We often act for clients right from the very beginning of their business journey, as was the case with The Veg Factor. After meeting with Stuart and Tony in the months before setting up their company it was clear they were about to start on a very exciting journey. We helped with the company formation and the relevant HMRC registrations including VAT and PAYE. Due to the nature of the business whereby they were likely to receive VAT repayments, we were able to apply for monthly VAT returns to assist the businesses cash flow.
The business uses a bespoke piece of software to manage the day to day needs of the business as well as the accounting records. We met with the software provided to understand the nuances of this software to ensure the work we did was accurate and correct.
We continue to prepare monthly management accounts for the client allowing them to spot any potential issues before they become big problems. Because of this accurate data the client was able to navigate Covid when 95% of their business custom disappeared overnight allowing them to come out the other side and continue to grow and thrive.
Increase you profit margins too
We are here in Leicestershire and beyond:
Whilst the majority of our clients are located within 10 miles of us, we do help clients in a range of locations including:
- Leicester
- Loughborough
- Oakham
- Nottinghamshire
Three ways clients use for to help manage their VAT returns
Full bookkeeping and VAT.
The majority of our clients use our help to manage their bookkeeping and VAT with these services fully outsourced to us, leaving them with more time to focus on doing what they do best in running their business.
VAT return preparation.
Some clients prefer to take care of their own bookkeeping for various reasons. In these cases, we will review the clients bookkeeping, make any necessary adjustments and then prepare the VAT return.
VAT check.
Some clients are completely happy to manage their VAT returns themselves and confident in their bookkeeping ability. In these cases, we will still check these returns on a timely basis to advise any areas of best practice if needed, reconcile the VAT control account and be at hand to help with any more technical VAT queries.
Common VAT mistake we prevent
By far the biggest challenge clients face is to get the VAT treatment of transactions correct. This could be in incorrectly reclaiming VAT on insurance payments, using the wrong VAT rates for electricity and gas or charging VAT on work which should be zero rated (taxed at 0%). We have also helped clients in the following situations:
- Clients in the care sector who incorrectly registered for VAT where the care they provided was fully exempt,
- Assisting another client in the care sector whose services provided were a combination of zero rated and exempt. In this case, although both income streams result in no VAT charged to customers, only part of their VAT incurred can be reclaimed. We helped this client correctly account for these partial exemption adjustments,
- A client who had not registered for VAT after exceeding the VAT threshold. They had assumed the VAT turnover threshold run for the financial year and not any twelve month rolling period. We helped the client correctly register and brought their VAT affairs up to date,
- A sole trader with two separate businesses incorrectly assumed the registration threshold applied applied to each business independently. Unfortunately, as a sole trader, the indididual is the VAT registered entity and so as soon as any turnover generated by them exceeded the threshold they needed to register, even though the individual businesses were below the threshold. We help adjust their business structure to ensure they were compliant.
WHY CHOOSE LYFE ACCOUNTANTS FOR YOUR PAYROLL?
We love seeing business grow and become successful. Since starting in 2007, we have supported many local and national businesses for their accountancy and business needs. Over time, with advances in accountancy software, we have been able to change the emphasis of our work from just completing the statutory accounts and tax returns to building a business which offers holistic business support guiding businesses from preparing regular management accounts to cash flow forecasts and full financial action plans.
By using the latest technology, and keeping a keen eye on the market for new software which will make our clients job easier, we are able to help our clients meet any challenges they come across, our clients are prepared for any taxes and changes in legislation, and we are on hand throughout their business journey, helping clients grow, thrive and achieve their goals, whether financial or non-financial.
We would love to help your business too.
Get the best personal service in Leicestershire
Pension setup
On time, every time
Contributions
Owner wage
FREQUENTLY ASKED QUESTIONS
If your VAT taxable turnover exceeds the registration threshold, then yes you do. You may also want to registered even if your turnover is not at this level. We will continually monitor your business to ensure you not only comply with all legislation but also to see if registered for VAT voluntarily will benefit your business.
Typically businesses file their VAT returns every quarter, however where the business is a repayment business whereby their VAT reclaimed on goods and services exceeds the VAT they charge on goods and services, you can apply to file VAT returns and receive these repayments on a monthly basis.
MTD ensures all businesses must maintain their business records (their bookkeeping) in a digital format and their VAT returns must be submitted to HMRC via fully compliant software.
Absolutely – some clients prefer to be involved in their business bookkeeping but lack the confidence to fully manage their VAT returns. In these cases we will carefully check the clients VAT records, adjust where necessary and submit on their behalf.
HMRC have a sliding scale of penalties for late VAT return submissions or late payment of VAT due. With our help, this will hopefully not be an issue.
No! Whilst some clients will incorrectly attempt to reclaim the VAT on transactions where this is not applicable, we will carefully check and correct these to ensure the VAT return is correct which could have resulted in penalties further down the line. VAT is a complex tax and in many cases VAT cannot be reclaimed on business expenses, such as on insurances, wages or bank interest. With our help, we will ensure you do not claim VAT where this is not permitted, but will also help to ensure you are able to reclaim the maximum VAT possible to reduce the amount payable.
Yes, on appointment we will register to be able to liaise with HMRC on your behalf to deal with any issues they may raise.
Of course. We will continually monitor your accounts to ensure you are fully compliant with all legislation and to see if there are opportunities to register for VAT to help your business.
Yes – we regularly review your accounts to see if there are any advantages in the various VAT schemes such as the flat rate scheme, or to assist with cash flow via cash accounting.
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