Finance - VAT Returns Overview

Finance - VAT Returns Overview

As of 1 April 2019, UK VAT registered businesses with a taxable turnover above the VAT threshold (currently £85,000 as of April 2019) are required to use the Making Tax Digital service to keep their records digitally and to use software to submit their VAT returns. There are several different VAT schemes run by HMRC - Easify will support the main 2 schemes:

1: Standard VAT Accounting – where the VAT is due on the invoice or purchase date.
2: Cash VAT Accounting – where the VAT is due when the invoice or purchase is paid.

Most UK business use the Standard VAT Accounting model, however if your VAT taxable turnover is £1.35 million or less you can use the Cash accounting scheme. This helps prevent you from having a large VAT liability when you haven’t yet been paid for a job.

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