VAT has a lot of different criteria, dates, rules, and laws. So trust us when we say you are not alone in feeling a little overwhelmed by it. That is before you cross borders and factor in import and export VAT.  When it comes to managing their VAT returns, even the most senior VAT veterans rely on the help of qualified accountants. But don’t worry, SK Accountants and Consultants Ltd has everything you are looking for!

How Does The VAT System Work?

When your business’s taxable revenue hits £85,000, you must register for VAT returns. This means that taxable products and services must be subject to VAT. The VAT return amount is calculated as a proportion of the taxable sale. This is known as an ‘output tax.’


Different VAT rates exist, but the most prevalent one, known as normal VAT, is imposed at a rate of 20%. For instance, if you sell a taxable item for £100, you must charge VAT by adding 20% to the sale price. As a result, you will charge £120 from the consumers. You can also retain the sale price at £100 and pay the £20 VAT yourself from the sale earnings. This can help retain existing consumers, but that also means you are losing money.


You will have to pay VAT if you make a purchase from another VAT-registered firm. When the shoe is on the other foot, the term ‘input tax’ is used.

Your HMRC VAT Return

You will need to reduce the amount of input tax you paid to your suppliers from the amount of output tax you collect from your own customers. HMRC will get this information every three months (your accounting period).

You can refund the difference if you pay more tax to suppliers than you receive from consumers. You must pay HMRC the difference if you collect more than you pay to suppliers.

If your VAT taxable turnover is less than £150,000, you can instead apply for a flat-rate plan. This allows you to pay HMRC a predetermined percentage rather than having to calculate output minus input. Get in touch with any of our expert tax accountants if this all seems a little too overwhelming for you.

How SK Accountants and Consultants Ltd Can Help You With Your VAT Returns?

If you are new to VAT returns, we can assist you to evaluate if you need to register or not. And we will also keep an eye on your circumstances. So that if it becomes necessary for you to register for VAT returns, we can handle all of the paperwork. We will, on the other hand, see whether you are able to and would benefit from deregistering.

We will look at the VAT schemes you are qualified for, whether you are a new or existing firm, and determine whether you would be better off adopting one or a combination of them. Some VAT systems can result in tax savings as well as a decrease in bookkeeping responsibilities.

SK Accountants and Consultants Ltd will prepare your VAT return using your own accounting data. Or we can handle both the record-keeping and the VAT return for you. And we will do all we can to help you claim as much VAT as possible. Our tax accountants will help you, particularly on controversial items like mixed-use spending and motor operating expenses.

We may serve as your Agent for VAT issues, just like we can for other types of tax. Our accountants contact HM Revenue & Customs (HMRC) on your behalf. Although paper VAT returns are becoming increasingly rare, our software allows us to file your VAT returns with HMRC online.

Late VAT registration, inaccuracies, late VAT returns, and late VAT payments can all result in fines and perhaps interest. Allowing us to handle your VAT matters not only provides you peace of mind but also prevents you from squandering money on penalties and interest.