1. How much VAT do I need to pay?

Tax Rate: There are three different VAT rates in the UK, 20% (Standard), 5% (Reduced rate), 0% (Zero rate). Please confirm with our Professional Accountant team if your goods and service is exempt from VAT or out of scope.

Taxable Turnover: Which is equal to (Output VAT – Input VAT). Output VAT is based on sales invoices. The amount most retail business receive has VAT tax included in the price. Input VAT is based on purchase invoices.

2. When is the deadline for VAT return?

You usually submit a VAT Return to HM Revenue and Customs (HMRC) every 3 months. This period of time is known as your ‘accounting period.’

The deadline for submitting the return online and paying HMRC is usually the same - 1 calendar month and 7 days after the end of an accounting period. If this is your first time claim VAT Return, you will find the due date in HMRC letter.

3. What documents do I need for VAT Return?

total sales or service amount in the accounting period

sales/output VAT

total purchase/import amount

purchase/import VAT

sales and purchase supporting documents

4. How can I pay my VAT bill?

You can pay VAT to HMRC electronically, eg through direct debit or internet banking. You can make the payment either from a UK bank account or from an overseas one.

Disclaimer:

The above information and calculations are for illustrative purposes only. No liability is accepted by O’Brien S & Co Ltd for any actions or losses from investment in reliance on the information and calculations. Consult a qualified professional financial advisor before making any financial decisions. O’Brien S & Co Ltd holds the copyrights in all materials on the website. All rights reserved.

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