Digital VAT Services
We’ll prepare & submit your digital VAT return for you
Are you feeling anxious about submitting your VAT return? Perhaps you are afraid of making mistakes or don’t have enough time to do it.
Preparing and submitting your VAT return can be a difficult task for many business owners. With numerous rules and regulations to keep in mind, it can be overwhelming. It’s important to avoid mistakes as it could result in fines. Remember, you’re not the only one who finds it daunting.
We can help with that.
If you have our team of experts working with you, you won’t have to worry about missing VAT return deadlines anymore and can focus on running your business.
Who needs to submit a VAT return?
If your business makes a taxable turnover of £85,000 or more in any 12 month period, whether you’re a sole trader, partnership or limited company, you need to register for VAT and submit a return.
It is also now compulsory for all VAT-registered businesses to submit their returns online via HMRC’s Making Tax Digital (MTD) system.
While MTD is intended to expedite and simplify the submission of your VAT return, you may still be averse to the task. In that case, we offer to complete the digital service process on your behalf.
The benefits of outsourcing your VAT return
Outsourcing your VAT return is a great solution if:
You’re worried about messing up your VAT return
You haven’t got time to do it yourself
You’re scared of missing the deadline
You don’t want to risk being penalised by HMRC
You want to spend your time focussing on your business – not worrying about your VAT return
In addition to saving you time and effort, our experienced team can also help you save money when preparing and submitting your VAT return.
By calculating your costs accurately, we will make sure that you only pay the exact amount you need to pay.
» How do I find my VAT number?
Your VAT number can be found on your HMRC VAT registration certificate.
» Who can charge VAT?
Businesses that are registered for VAT can charge VAT on their goods and services. Businesses must register for VAT if their taxable turnover is more than £85,000.
» What are the main VAT rules?
The main rules for VAT include:
- VAT must be charged at the correct rate
- VAT records must be kept and updated regularly
- VAT returns must be submitted on time to HMRC
- Businesses must pay all VAT due in full
» What is meant by UK VAT?
UK VAT stands for ‘Value Added Tax’ and is a tax on certain goods and services within the UK. All businesses registered for VAT must charge it on their goods and services at the appropriate rate, collect it from customers, pay it over to HMRC, and keep accurate records of all transactions.
» What are VAT liabilities?
VAT liabilities are the amount of VAT that must be paid to HMRC by a business. It is calculated by subtracting any input tax (the VAT that has been paid out) from the output tax (the VAT charged on sales). Any difference between these two figures must then be paid to HMRC as your liability.
» Which businesses are VAT exempt?
Businesses providing certain services and goods are exempt from VAT.
Examples of these are:
- Education services
- Healthcare and medical services
- Charitable activities
- Overseas sales of goods to non-EU customers
- B2B postal services
- ‘Zero-rated’ goods (such as food, children’s clothes and books) are not exempt but still have a 0% rate of VAT
If you’re unsure if your business is required to pay VAT, or want to know more about the process and how Angel Bookkeeping electronically supplied services can help with your specific needs, get in touch today.
» What is meant by input VAT?
Input VAT is the VAT you have paid out on business-related purchases. It is then deducted from the output tax (the VAT charged on sales) to calculate the total liability of your company. To claim input tax, you must hold a valid receipt or invoice from your supplier that shows how much was paid, what it was for and how much VAT was charged. All input tax must be claimed in the VAT return you submit to HMRC.
» What is VAT treatment?
VAT treatment is the process of calculating and paying VAT on supplies made by a business. This includes charging the correct rate on sales, deducting input tax from payments you’ve made, submitting your VAT return and paying any amount due to HMRC.
» Is VAT collected during a particular accounting period?
Yes, VAT must be collected during a particular accounting period. This is usually done in the form of a quarterly or annual VAT return that must be submitted to HMRC. The return details all sales and purchases made by your business and any credit notes or refunds issued. The total amount of output tax (VAT charged on sales) minus input tax (VAT paid out on purchases) must be included in the return, and any difference due to the tax authorities (HMRC) must also be paid.
» What are VAT rates?
VAT rates vary depending on the goods or services being supplied. The standard rate of VAT is currently 20%, however reduced rates such as 5% and 0% may apply to certain items. It is important to check with HMRC which applies to your business.
» As a UK Company with a taxable turnover just under £85,000, do I have to pay VAT?
No, if your taxable turnover is below £85,000 then you do not need to register for VAT and therefore will not have to pay the tax. However, you may choose to voluntarily register for VAT which would allow you to charge other businesses VAT on sales. This would also give you the opportunity to recover any input tax that has been incurred on goods services used for your business.
Angel Bookkeeping electronically supplied service can help review each customer’s business and decide on your VAT position and if voluntary registration is the right decision for your business.
» Do I need to pay VAT on digital services?
Yes, digital services such as software downloads, pdf document automatically downloaded products and online streaming on a digital platform are subject to VAT just like physical goods. The rate of VAT that must be applied depends on the country where the customer is based, meaning you may have to charge different rates for customers in different countries. Angel Bookkeeping payment service providers can help ensure you are correctly collecting and paying over any applicable services tax.
» What is a private consumer?
A private consumer is an individual who purchases goods and services for personal use, rather than business purposes.
» What is meant by an EU country?
An EU country is any member of the European Union. This includes both countries in the European Economic Area (EEA) as well as those outside the EEA, such as Switzerland. Businesses which supply goods and services to customers in another EU country may be liable for charges known as ‘distance selling’ or ‘intra-community trade’. Angel Bookkeeping can help you understand and meet your obligations when trading with customers in other EU countries.