VAT Returns Wiltshire

VAT, and the perception of the unpaid tax collector, is frequently seen as a burden for small business owners, which is not necessarily correct. Some schemes can be beneficial, but you need to know which the right scheme is for you and your business.

John Nuth & Co can also advise you on the possible benefits of voluntary registration for VAT.

VAT Returns to help benefit your business

VAT Returns Salisbury

Make sure you get the horse and the cart in the right order

john nuth accountants wiltshire

What is VAT?

How does the process work?

Just because you are in business it does not mean that you must operate a VAT system. In general it is only if your taxable supplies are above a certain limit that you must register for VAT. You may be able to voluntarily register if you feel that this would benefit your business. This may be the case where you would like to reclaim input VAT. However do not underestimate the administrative effort involved with making VAT returns and this must be weighed against any financial gain. The registration process itself is quite straight forward but allow 4 to 8 weeks to obtain your VAT registration certificate.

Generally, when you are registered, VAT returns must be made quarterly. However other periods are available under certain circumstances. In simplified terms, 5 figures are required: the output VAT collected, the input VAT reclaimed and the net of these 2 figures. These, together with the related sales and purchases, form the central VAT return.

The process is designed so that only the end consumer bears the VAT charge as each trader in the supply chain can, theoretically, reclaim their input tax suffered and pay over the VAT charged. Therefore it is only the final consumer that cannot reclaim input tax as they will not be registered for VAT. Finally, bear in mind that there are a number of VAT schemes available to try and ease the burden on the business e.g. the Flat Rate Scheme, the Cash Scheme and various retailer schemes.

How does this affect you?

What are the pitfalls and benefits?

If you exceed the registration threshold then you must register for VAT. You have approximately 30 days to do this and the easiest way is on-line. The process is relatively straight-forward and we would be happy to complete this for you. Once registered you must make quarterly returns and you must charge output VAT on your supplies. If you fail to do this it could be expensive as HMRC may decide to obtain the lost VAT from you directly and if you can’t reclaim this from your customers this will be a direct loss to you.

Do not ignore VAT or put it on the back burner – it could be expensive. Make sure that you have a sensible accounting system that can keep track of the various entries. This does not need to be an expensive system and can in fact be quite simple. However, whatever system you use, it must be operated and maintained properly.

How can John Nuth help?

We manage and operate the VAT reporting for a number of clients, and can provide help and advice on VAT or complete and file your VAT returns for you.
We also help with:

  • Assessing when you need to effect compulsory registration
  • The pros and cons of voluntary registration
  • Flat Rate VAT schemes
  • Cash Accounting Scheme
  • Annual Accounting Scheme
  • Making the most of the rules on de-registration
  • Partial exemption
  • Timing and delaying VAT payments
  • HMRC visits

If you would like to find out more then please give us a call on 01985 850622 or you can email us at us at