What is the Annual Accounting VAT Scheme?

Taxfile > VAT & MTD > What is the Annual Accounting VAT Scheme?
11th Oct
No Comments

Under ‘normal’ circumstances, VAT registered businesses submit their VAT returns to HMRC quarterly.  The annual accounting scheme allows you to complete just one VAT return each year.  You then pay instalments of the VAT that you expect to owe (usually based on your previous VAT return figures), so that you are not faced with a large VAT bill at the end of the year.  The main benefits of the scheme are:

 

  • it helps you smooth out your cash flow by paying a set amount each month or quarter
  • you can make additional payments as and when you can afford to
  • you only need to fill in one VAT Return each year instead of 4
  • you get 2 months to submit your annual VAT Return and balancing payment, instead of one
  • you can align your VAT year with the end of your business tax year to simplify your end of year routines
Categories:

    © 2019 Guy Bridger Ltd t/a Taxfile - All rights reserved.