All the good things and the bad things that may be… let’s talk about it
Because TODAY is the deadline day for VAT returns and payments of Accounting Quarter period ending 31st December 2021.
Do you need to do anything NOW?
If this is your first year of submitting a VAT Return you need to make sure you’ve signed up for ‘Making Tax Digital for VAT’ because it’s all online.
There’s a few things you’ll need to do like make sure you’re registered for VAT. Have signed up for an online account and have applied for a VAT number.
Now obviously if you’re reading this today and thinking ‘oh sheesh kebabs’ I have not idea what to do then don’t panic just have a natter to your accountant. They’ve probably got it all in hand for you if that’s part of your package.
If not then QUICK get on line and fine the button that says ‘VAT submit returns’ without delay. ONLY if you were hitting the £85,000 turnover for the period mentioned above.
Find more on the HMRC website here https://www.gov.uk/vat-returns/send-your-return
Have we left you wondering whether you need to be VAT registered?
You can only register for VAT if you’re a limited company. Obviously the biggest reason to think about voluntarily registering for VAT is to reclaim VAT you’re charged. So have a look and see whether that hits you hard each year.
Once you’re registered you’ll need to charge VAT on all of your goods and services.
Now there’s nothing voluntary about your turnover is over £85,000 per annum OR you know you’re going to hit that fairly quickly. So if in the next 30 days you think your VAT taxable turnover will hit that threshold you MUST register pronto.
Here’s more on this topic https://www.gov.uk/vat-registration/when-to-register
What happens if there’s no spondoolies in your bank account to pay for the 2021 accounting quarter’s VAT bill?
Allowances will be made for OCCASSIONAL late payments; HMRC will facilitate you paying your tax arrears in monthly instalments. It’s called a Time to Pay (TTP) arrangement and lasts around 12 months. So it’s important you talk to HMRC (or your accountant does) NOW, today. It’s serious stuff.
Want to talk VAT and Accounting Period payments with Ascentant? Click here https://ascentant.co.uk/contact/