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VAT filing in the UK, done by JAKS , typically involves several steps to ensure compliance with HMRC regulations
Threshold: Any business selling goods and services earning more than £ 85 000 in any twelve months must register for VAT.
Voluntary Registration: Businesses whose compliance with the turnover threshold is below the required shall also register for VAT on their initiative.
VAT Number: After registration, an enterprise is assigned a Unique tax identification number for VAT.
Output Tax: VAT is charged on most sales and paid on some goods and services provided. Reduced rates of 5% are also available, and zero rates are applied to some items where the standard rate is 20%.
VAT Invoices: Business entities must send customers the VAT invoice for their sales with the correctly charged VAT amount.
Sales Records: Sales should be well documented, just like all other operations, and this should include the account of all invoices given.
Purchase Records: Ensure you maintain proper records of all transactions that attract VAT.
Calculation: Calculate the gross value of the sales made in the period you are reporting, and calculate the total value of the VAT contained in the gross figure of the sales value.
Form: Complete the VAT return form and total sales, purchases, output tax, input tax, and net VAT payable or recoverable.
Digital Submission: VAT returns should be filed by the due date via the MTD for VAT or software link to HMRC.
Frequency: Tax returns can be filed yearly or monthly, depending on the business decision.
Payment: When the tax obtained is higher than the taxed supplies, the difference must be reimbursed to HMRC.
Reclaim: Where the input tax exceeds the output tax, the excess can be claimed back from HMRC.
Digital Submission: VAT returns must be filed online using the HMRC MTD service or appropriate functionally compatible software.
Frequency: Returns are typically provided at the end of each quarter, but some businesses may provide the figures monthly or yearly.
Payment: If the output tax is more than the input tax, the amount has to be paid to HMRC.
Reclaim: Where the input tax is greater than the output tax, this is credited to the business and can be recovered from HMRC.
Submission and Payment: The VAT return and any payment due must be filed within one month and seven days of the end of the VAT period.
Penalties: In most cases, additional charges and interest will be attached to tardiness and late payments.
Retention Period: Companies must retain records about VAT for at least six years.
Digital Records: According to MTD, creating electronic records of all VAT transactions is mandatory.
Regulations: Compliance with all the VAT Acts and regulations applicable in the country regarding the right application of the VAT rates and proper invoice issuance.
Audits: This means that, over time, HMRC may audit a company to see if it complies, and therefore, proper records must be kept.