VAT and Tax Returns Colchester
VAT and Tax Returns Colchester
VAT and tax returns are designed to ensure compliance with HM Revenue and Customs. If you own a business, you must submit a tax return. Tax returns are completed in order to declare your income regardless of whether you are a sole trader, a partnership or a limited company. This informs HMRC how much tax is due to be paid.
If a VAT or tax return is not submitted in time, financial penalties are issues which also accrue interest. This is why it’s so important to prepare in advance and have your VAT and tax returns completed on time. If you complete your returns with time to spare, you will know how much you will be charged and have time to make the payment. We can help you to make sure you stick within the guidelines and don’t get stung.
HMRC conduct random spot checks on businesses which is why it’s a good idea to keep on top of your VAT and tax. So long as you demonstrate conformance and good practice, this should cause no hassle whatsoever. P S Bookkeeping and Accountancy of Colchester are able to advise you in matters of good practice and ensure that you conform to government legislation.
VAT is a tax charged on goods and services which is added to their cost and paid for by the end customer as required by European law and the HMRC. VAT can be particularly complicated, and making sure you are paying the right amount can be confusing. The standard rate is 20% but there is a lower 5% rate and a 0% rate on certain items.
VAT is only paid if your gross income exceeds £82,000, at this point you must pay and charge your customers VAT. There are currently three schemes:
- Flat Rate Scheme
- Cash Accounting Scheme
- Annual Accounting Scheme
A business would usually use the Cash Accounting Scheme. In certain circumstances you may be able to apply for one of the other schemes; we would advise speaking to a member of the team at P S Bookkeeping and Accountancy before you do as we can advise you whether you are eligible for these tax schemes in order to help you avoid unnecessary VAT increases.
VAT returns should be submitted to HMRC each quarter. It could be beneficial to register for VAT even if you are not required to; we will advise you if this is the case.
We will advise you on calculating how much income tax you have to pay, remember this applies to your salary, profits you make if you’re self-employed, some benefits, most pensions, interest on savings and benefits from your company.
Self Assessment is the process used by the HMRC to collect income tax. Tax will normally be automatically deducted from wages, savings, and pensions. Any other forms of income must be stated in a tax return.
If you are self-employed you can fill in your self-assessment online and we will be happy to help you do this. Should you wish to submit a paper assessment, keep in mind that the deadline for submissions is much sooner.
P S Bookkeeping and Accountancy – Accounting Specialists in Colchester
Different taxes, rates and requirements apply depending on your type of business, your products and how much you earn amongst other things. P S Bookkeeping and Accountancy are here to make sure you make the correct submissions and do so in plenty of time. We can also help you to claim any allowances you may be entitled to.
If you’re not sure about how to register for VAT or to submit tax returns, mistakes can be made. The experienced accountants at P S Bookkeeping and Accountancy of Colchester are here to save you money and, ultimately, offer you peace of mind.