VAT Returns

Company Accounts package is for limited liability companies that are both VAT and non VAT registered.

COMPANY ACCOUNTS PACKAGE VALUE ADDED TAX (VAT)

Company Accounts package is for limited liability companies that are both VAT and non Vat registered.

No vat will be collected on these automated vat returns when Zero replaces the standard rate (20% in 2013) on the sales and purchase spreadsheet. This enables the Accounting Software to be used by both vat registered and non vat registered business and those businesses using a Vat Flat Rate Scheme.

Vat Flat Rate scheme simply alter the vat rate on the first sales sheet to the flat rate percentage and the vat flat rate scheme is then fully operational and automated.

This is the actual note contained in the user guide that accompanies all packages purchased:

CHANGE REQUIRED IF VAT FLAT RATE REGISTERED
Businesses with a turnover including vat of under £150,000 p.a. may adopt a flat rate vat scheme the rate varying according to the industry.
When a flat rate scheme is adopted invoice sales including the standard vat rate as applicable.
Also change the vat calculation throughout the accounting system by entering the vat flat rate just once as follows:
Go to Sales Spreadsheet Column H Row 4 Cell H4 (this cell is shaded light blue)
Enter the FLAT RATE PERCENTAGE
This entry to the sales spreadsheets are then automatically carried forward to the remaining months effectively changing the collection of vat from the standard rate to the Flat Rate percentage.
In addition it shows sales turnover net of the flat rate percentage and accounts for all purchases including vat input as a business expense on the aut5omated vat return..


HM REVENUE & CUSTOMS QUARTERLY VAT RETURNS AUTOMATED
No Entries required – fully automated quarterly vat returns ready for transferring figures direct to the Vat return.

The Vat return shown below is the actual vat spreadsheet that is fully automated within the financial accounting software enabling the potential vat liability to be viewed at any time during the vat quarter.
Protect the sales and purchase excel spreadsheets after completion and you have a complete audit trail if inspected


The vat threshold at which small businesses must seek a vat registration usually changes in the budget each March. The vat threshold of from 1st April 2008 is £67,000 p.a. Companies should register for vat unless this sales turnover has been exceptional and not likely to be repeated on an ongoing basis.

Businesses should note the legal position regarding vat that under the customs rules any business whose sales exceed the vat threshold increased from 1st May 2009 to £68,000 p.a., are liable to pay vat at the standard rate (20% in 2013) on their sales turnover whether they register with HM Revenue & Customs for vat or not.

Value Added Tax (VAT)

Further guidance is available from the HM Revenue & Customs website vat portal at:

http://customs.hmrc.gov.uk/channelsPortalWebApp/channelsPortalWebApp.portal

VAT is a tax on the final consumption of certain goods and services. HM Revenue & Customs Introduction to VAT guide provides a summary of the basic principles of VAT. Business Briefs, JVCC papers, VAT Information Sheets are all available in the HMCE Library section. HMCE Contact Us section includes information on 'Where to send your VAT forms or returns'.

Businesses can register for vat online at: VAT Online Registration Service

HMCE have a number of schemes available to make calculating and paying vat easier details of which can be found at:

Choose the right VAT scheme for your business

HM Revenue & Custom Information and Guides

Use the categories below to browse HMCE VAT publications which include introductory guides on key topic areas, detailed guidance from Public Notices as well as information sheets and business briefings. If you cannot see exactly what you are looking for, try searching for all VAT publications in the HMCE Library.

Introduction to VAT This is a summary of the most common VAT issues and a good place to start finding out how it affects you and your business.

Managing your VAT Includes guidance on setting up and keeping VAT records, details of common errors made, and help if you have payment problems. Information on Motor Trade issues is also available.

Registering for VAT Registering for VAT is compulsory for some companies and voluntary for others. Find out how your business fits the bill and how to get registered.

Special Schemes & Options HMCE have a range of special schemes and options to simplify VAT for small businesses. See if you qualify for a vat flat rate scheme or would prefer to spread your payments over fixed, monthly instalments.

VAT & International Trade There are import rules and procedures for dealing with VAT on international trade. See this section for relevant material.

"Notes on registering for vat, threshold levels, flat rate scheme and automated vat returns included in the company accounts package"