If your turnover is more than £85,000 per year, you are required to register your business for VAT and submit quarterly VAT returns to HMRC.
There are different VAT Accounting schemes, and it can be difficult to know which one is right for your business.
Most small to medium-sized businesses tend to use one of the following VAT Accounting schemes:
- Standard VAT Scheme – where a business submits quarterly VAT returns to HMRC and pays any VAT that is owed on a quarterly basis. Refunds are also repaid quarterly if costs are higher than sales.
- Flat Rate VAT Scheme – where a business pays a fixed percentage of its annual turnover in VAT
It may also be possible to register your business for the Annual Accounting VAT Scheme, which allows businesses to make advanced payments towards their VAT bill and submit one VAT return each year.
To find out more about which VAT scheme would be best for you, please contact us.