VAT services
Taking the pain out of your VAT returns
VAT can be a pain for some businesses. That’s just the truth. Keeping on top of your annual turnover and trying to determine whether you need to register or deregister is just the tip of the iceberg.
If you have to register for VAT, you then have quarterly reports to complete and bills to pay. Yet another arduous admin task to complete before your deadlines.
Rather than letting your paperwork stack up, why not mitigate the process and hand your VAT returns over to us?
VAT filing Services for businesses
Although VAT filing is repetitive, we’re happy to take it off your hands. Not only will outsourcing guarantee everything is done on time with pinpoint accuracy, but it also gives you time to focus on every other aspect of your business.
Because there are multiple VAT rates, it’s essential you’re charging the right amount for your goods and services. We know it all like the back of our hands, so you don’t need to worry.
MTD-ready
What’s more, because we work in full compliance with Making Tax Digital, everything will be organised and filed in all accordance with HMRC’s latest guidance.
Don’t let the shadow of VAT loom heavily over your shoulder. Our VAT accounting services will do everything for you in a cost-effective way.
Interested in learning more? Find an accounting package that works for you.
What are you waiting for?
We’re so excited to work with you and your business – let’s talk whenever you’re ready.
Business services
Personal tax help
Online accounting
“They have helped me completely transform the way I run the finances”
“If you need accountancy services, look no further. I could not recommend Lumin any more highly. They have helped me completely transform the way I run the finances in my business and have helped me build my confidence in knowing the numbers.”
-Harri Halvon-Hardy
FAQs
How does VAT benefit a business?
VAT (Value Added Tax) can benefit your business in several ways:
- Reclaim VAT on Purchases: If you’re VAT-registered, you can reclaim VAT on goods and services your business purchases, reducing your overall costs.
- Improves Cash Flow: VAT-registered businesses can offset the VAT they pay on purchases against the VAT they collect from customers, helping with cash flow management.
- Increased Credibility: Being VAT-registered can enhance your business’s credibility with customers, suppliers, and other businesses, showing you’re established and compliant.
- Business Growth Opportunities: VAT registration is required once your turnover exceeds the VAT threshold, so it can help you scale and formalise your business operations.
- Better Financial Management: VAT encourages more structured financial record-keeping, helping you maintain accurate and transparent accounts.
Do I need to pay VAT as a small business?
As a small business, you only need to pay VAT if your taxable turnover exceeds the current VAT registration threshold (which is £85,000 as of 2024). If your turnover is below this threshold, you are not required to register for VAT, but you can choose to do so voluntarily.
Key points to consider:
- If you’re below the threshold: You don’t have to charge VAT to customers or pay VAT on your purchases, but you can’t reclaim VAT on your business expenses.
- If you’re above the threshold: You must register for VAT, charge VAT on sales, and pay VAT on purchases, but you can reclaim the VAT you’ve paid on business expenses.
How often do VAT returns need to be submitted?
VAT returns are typically submitted quarterly (every three months), but some businesses may be required to submit them annually or on a different schedule, depending on their specific VAT scheme.
- Quarterly Returns: This is the most common schedule for VAT-registered businesses. You’ll need to submit a return every three months and pay any VAT owed to HMRC.
- Annual Returns: If you’re on the Annual Accounting Scheme, you submit a VAT return once a year, though you may still need to make quarterly payments.
- Monthly Returns: Some businesses, particularly those with high turnover or complex VAT affairs, may need to submit returns monthly.
What is the due date for filing a VAT return?
In the UK, VAT returns and any payments due must be submitted to HMRC one calendar month and seven days after the end of your VAT accounting period.
For example, if your VAT period ends on 31st December, your VAT return and payment would be due by 7th February. It is important to ensure that you meet this deadline to avoid any penalties or interest charges. At Lumin Accountancy, we can help you to stay on top of your VAT deadlines, ensuring your returns are accurate and submitted on time.
What does MTD compliant mean?
Being MTD compliant means adhering to the requirements of Making Tax Digital (MTD), a UK government initiative to simplify and digitise tax reporting. Businesses must use approved software to keep digital records and submit tax returns to HMRC directly.
For VAT, businesses with taxable turnover above the VAT threshold must:
- Maintain digital records of VAT transactions.
- Submit VAT returns using MTD-compatible software.
Can I submit a VAT return without MTD?
No, if your business is required to follow Making Tax Digital (MTD), you cannot submit VAT returns manually through HMRC’s online portal. Instead, you must use MTD-compliant software to maintain digital records and file your VAT returns.
MTD is mandatory for VAT-registered businesses with taxable turnover above £85,000. If your turnover is below this threshold but you’re voluntarily VAT-registered, MTD may not apply, though you can choose to comply.
At Lumin Accountancy, we can help you transition to MTD-compliant systems, ensuring your VAT returns are submitted accurately and on time.
Start your journey
We’re so excited to work with you and your business – let’s talk whenever you’re ready.
Get in touch
Discovery chat
Get started
