VAT Returns

Are you VAT registered?

Hate having to do VAT returns?

Or, are you not VAT registered at present but may need advice on whether to register?

At HML Davies Limited, our team has years of experience in helping clients with preparing and submitting VAT returns and liaising with HMRC on clients’ behalf.

Not all businesses need to register for value added tax (VAT) but if you are VAT registered:

  • You pay VAT on products and services you buy from other businesses
  • You charge VAT on products and services you sell to other businesses and customers

When do you need to register for VAT?

  • You must register if your turnover in the past 12 months is more than the threshold. Click here for the latest threshold
  • You think your turnover will soon be more than the threshold, please contact us.
  • For some small businesses, it can be beneficial to register even if your turnover is less than the threshold. For example, if:
  • You buy many more products and services with VAT than you sell - as HMRC will pay you back the difference
  • You think your turnover will be over the threshold in the near future and you want to get the registration of VAT out of the way now
  •  You want to show you are a legitimate business, certified by HMRC.

What is a VAT Return?

A VAT return is a form you complete and send to HMRC usually four times a year to show how much VAT you are about to pay them. If you are not registered for VAT, you don’t need to send them a VAT return.

The VAT return shows how much VAT you have charged on your sales to customers and how much your business has paid on products and services (known as ‘items’) it has bought in a given period usually the last quarter.

For the latest rates of VAT, please click here

Most items are what is called ‘standard rate’ unless otherwise stated:

  • Reduced rate is levied on items such as domestic fuel and power, installation of energy-saving materials, sanitary hygiene products and children's car seats.
  • Zero-rate covers items such as food (but not restaurant meals or takeaways), books and newspapers, children's clothing and shoes and public transport.

Other items are exempt from VAT such as insurance, providing credit, education, fund-raising events by charities, membership subscriptions and most services provided by doctors and dentists but our team at HML Davies Limited can advise you on the correct rate to apply to any items you are buying or selling.

It’s important that a business keeps accurate and up-to-date accounts in order to allow it to calculate VAT accurately.

You usually fill out a VAT return every three months. You can do it online or in paper format. There are different ways to account for your VAT: the annual accounting scheme, the flat rate scheme, the cash accounting scheme, plus VAT margin schemes and VAT retail schemes.

At HML Davies Limited, we can advise you on the most appropriate VAT scheme for your business. Call us on 01204 393 040 or fill in the contact us form to discuss your VAT needs.