For many businesses, registering for VAT (value added tax) can be a complicated process. The government imposes this indirect tax on the majority of products and services. In order to continue being compliant with MTD for VAT returns, businesses with a turnover of more than GBP 85,000 from VAT-able products and services must register for VAT and have a VAT online account registered with HMRC.
Numerous small businesses find it difficult to register for or file their VAT returns due to the intricate procedures involved in doing so. Depending on the size and structure of your business, you may or may not need a tax accountant London, to file your VAT return. Small sole proprietorships may have a simpler organisational structure, indicating that they are capable of handling their own VAT return responsibilities.
Still, a lot of sole proprietors would rather leave their VAT return work to expert cloud accountants, London, who can guarantee timely and easy VAT filings while still adhering to MTD regulations.
Significance of an Accountant In Filing VAT Returns
When a sole proprietor’s or company’s turnover surpasses or is projected to surpass, the current GBP 85,000 threshold for the specified term, they must register for VAT. However, some businesses may have reasons to opt for voluntary registration in spite of their turnover being below the threshold.
For example, if you mainly sell products or services to VAT-registered sole traders and businesses, then you will be eligible to claim back the VAT that you pay on all business expenditures you incur.
A committed tax accountant, London may provide their clients with much more than just experience, knowledge, and efficiency. While there are specific processes that must be followed in order to file a tax return, the most important thing is not always what you do but rather how you do it.
You run the risk of receiving an investigation notice from HMRC if you submit inaccurate VAT returns. Appointing an expert Xero Accountant on your behalf to submit VAT returns as your agents can assist you minimise mistakes while ensuring you stay MTD compliant using efficient accounting software to submit your VAT returns to HMRC.
1. Assist with the VAT Registration Process
Both a VAT online account and a VAT number are required. From November 2022, the only ways you can file your VAT returns are through an agent such as a tax advisor or professional accountant, or by using commercial accounting software that complies with MTD regulations. If you use the VAT Annual Accounting Scheme, you are still able to use the HMRC Online Account.
VAT accountants London will assist you with registering with HMRC if you are not already registered with HRMC. Accountants are familiar with the legal system and how your business fits into it. Your HMRC account is yours for as long as you need it after the accountant sets it up.
2. Accurate Account Configuration for Online Filing of VAT Returns
Businesses must submit VAT returns one month and seven days after their VAT quarter ends. Even if a company has no VAT to pay or reclaim, they still need to file a VAT return with HMRC.
Depending on the revenue, HMRC may issue a warning letter or levy penalties for late submission of VAT returns. The penalty structure for VAT has changed from 1st Jan 2023, you can read more about HMRC VAT penalties on the HMRC website.
A tax accountant, London is an expert in legal guidelines and accounting nuances for your business. Accountants will make sure that all information is processed in your best interest and in compliance with tax regulations after they have set up your account based on your needs.
3. Getting in touch with HMRC regarding your VAT return
One of a tax accountant’s responsibilities is to represent you in negotiations and contact with HMRC. They are fluent in the complex jargon of taxes, and they can expertly convey your company’s interests due to their oratory skills.
4. Accurately File Your VAT Return Online
As experienced accounting professionals, accountants, London, ensure the precise handling of input and output data. You may rely on accountants to do your tasks on schedule and skillfully.
Conclusion
It is less expensive for firms to outsource the filing of VAT returns to a tax accountant, London, than to hire a full-time internal accountant to handle just VAT-related duties. When outsourcing VAT returns, the competitive advantage lies in taking into account the firm’s size, structure, and customer interactions.
Businesses can save a tonne of money over time by hiring specialised VAT accountants to file VAT returns or by getting specialised VAT advice. If your company is new or expanding quickly, outsourcing your finance function might be a very good way to reduce errors and save expenses.