VAT
At Green Path Accountants, our qualified and experienced team manages your VAT reporting and returns throughout the year with precision and efficiency.
Combining advanced accounting software, in-depth tax expertise, and the support of a dedicated client manager, we ensure full compliance with HMRC’s Making Tax Digital requirements. Our proactive approach provides you with peace of mind and helps you stay on top of your VAT obligations with ease.
What is VAT?
Value Added Tax (VAT) is a tax levied on the sale of goods and services. If you run a business, you may be required to register for VAT, charge it on your sales, and pay VAT.
Businesses with an annual turnover exceeding £85,000 (the current VAT registration threshold) must register for VAT. This involves adding VAT to the price of goods and services sold, collecting it from customers, and submitting it to HMRC through quarterly VAT returns.
Ensuring VAT compliance is a vital aspect of effective financial management for any business.
Understanding Your VAT Registration Number
When your business registers for VAT, HMRC issues a unique nine-digit VAT registration number, typically prefixed with ‘GB’.
This number is specific to your VAT-registered businesses and is included on your VAT registration certificate. The certificate also outlines key information, such as the date your business became liable for VAT registration and the due date for your first VAT return.
Your VAT registration number is essential for maintaining compliance and is required for issuing VAT invoices, reclaiming VAT on business expenses, and conducting transactions with other VAT-registered entities.
When is My VAT Payment Due?
To view your VAT Return and payment deadlines, simply log in to your Government Gateway account and access your VAT online account.
Your VAT online account provides essential information, including:
In most cases, the deadlines for submitting your return and making your payment are the same. These are typically set as one calendar month and seven days after the end of your VAT accounting period.
Example
For example, if your VAT accounting period ends on 31 March, the VAT payment must reach HMRC by 7 May.
If you pay by Direct Debit, HMRC will usually collect the payment automatically three working days after the return deadline.
Staying informed and up to date with your VAT submission and payment deadlines is vital for maintaining compliance and avoiding late payment penalties. As your trusted accountancy partner, we’re here to help ensure your obligations are met on time, every time.
How to Determine Your VAT Payment Deadline
To check when your VAT payment is due for the current accounting period, visit the official HMRC website for accurate, up-to-date information tailored to your business.
Please Note:
Using the right tools and staying informed helps ensure timely submissions and seamless compliance with your VAT obligations.
How Does VAT Work?
Businesses registered for VAT are required to submit VAT Returns to HMRC either monthly, quarterly, or annually—depending on their chosen accounting scheme.
A VAT Return provides a summary of:
If your output VAT exceeds your input VAT, you must pay the difference to HMRC. If your input VAT is higher, you may be eligible for a refund from HMRC.
Accurate and timely VAT reporting is essential for maintaining compliance and avoiding unnecessary penalties.
Paying Your VAT Bill
VAT payments to HMRC must be made via Direct Debit or Internet Banking. Please note that cheques are no longer accepted as a method of payment.
If you're experiencing difficulties making a payment, it's important to contact HMRC as soon as possible to explore your options and minimise the risk of penalties.
Making timely payments is essential for staying compliant and avoiding unnecessary disruptions to your business operations.
Is Your Business Ready for Making Tax Digital (MTD) for VAT?
Making Tax Digital (MTD) has transformed the way UK businesses manage and report VAT. It is now mandatory for all VAT-registered businesses to keep digital records and submit VAT Returns using HMRC-approved software.
At Green Path Accountants, we use Xero, a leading MTD-compliant platform, to make the process seamless and stress-free for our clients.
Our VAT and MTD services include:
Let us take care of the complexities of VAT and ensure your business remains fully compliant with MTD—so you can focus on what you do best.
Station business centre
1 Victoria street Chadderton
Oldham
OL90HH