We know that all business owners want to save money we can, that is completely normal. However, trying to save money by completing your own VAT returns can result in it costing you more. Here at Direct Peak we are a local accountancy firm in Peterborough and we can help you complete your VAT returns correctly and on time.
You might even find that by using a local accountancy firm in Peterborough for your VAT returns you could end up saving more money than you pay, not to mention the time and stress you will save.
In this article we have put together just some of the common mistakes that people make when doing their own VAT returns. So, if you do decide to do your own VAT returns you know some of the mistakes you can avoid.
- Flat Rate Scheme
If your company is registered for the Flat Rate Scheme then the box 6 figure on your VAT return needs to show the gross sales for that period. While you charge VAT at 20% on your net sales, the Flat Rate Percentage is applied to your gross sales. When people return their own VAT returns as registered Flat Rate Scheme businesses, this is a mistake that is often made.
- Nil VAT Returns
People commonly believe that if you do not trade in a period that you don’t need to submit a VAT return. However this is not true. Instead you need to submit a VAT return that says the sales were none. As no sales were made therefore no VAT is due. It is important that you remember if you’re using Standard Rate rules for VAT that there may be some VAT reclaimable. This will create a refund from HMRC for that quarter. If you are on the Flat Rate Scheme and have a single purchase of capital expenditure goods that cost at least £2,000 (VAT inclusive) then the input VAT may still be able to be reclaimed.
- Flat Rate Percentage
If you are registered for the Flat Rate Scheme as a company then you must follow the new rules that came in during April 2017. These rules are in regards to ‘limited cost businesses’ and came in play from HMRC. These rules can be confusing for some business owners because it is hard to know the correct percentage that needs to be applied. This is especially the case if you are still in your 1% discount period.
If you would like to work with a local accountancy firm in Peterborough on your VAT returns then please contact our team. We would be happy to discuss your business and how we can help make your VAT returns easier.