It’s important to know what you need to pay VAT on and when. This article will take you through the process of paying your tax, submitting a Vat return, and what you need to do if you’re not registered for VAT.
What is VAT?
In the United Kingdom, value-added tax (VAT) is a tax on goods and services. The standard rate of VAT is 20%. Some items are exempt from VAT, such as food and children’s clothing.
VAT is charged on most goods and services sold in the UK by businesses registered for VAT. This includes everything from cars to haircuts.
When you buy goods or services from a business registered for VAT, the business will add VAT to the price of the goods or services. This is called the ‘standard rate’.
If you’re registered for VAT, you can claim back the VAT you’ve paid on goods and services that you’ve bought for your business. You do this by submitting a VAT return.
Submitting a VAT return can be done online through the HMRC website.
Who has to pay VAT?
VAT is a tax that is charged on most goods and services in the UK. If you are registered for VAT, you must charge VAT on your sales and pay it to HMRC. You can then reclaim any VAT you have paid on your purchases.
Who has to register for VAT?
You must register for VAT if your business:
-has a turnover of more than £85,000
-is based in the UK
-sells goods or services that are subject to VAT
If you are based outside the UK but sell goods or services to customers in the UK, you may also need to register for VAT.
How do I pay VAT?
If you are registered for VAT, you will need to submit a VAT return to HMRC every quarter. This must be done online through the HMRC website.
When you submit your return, you will need to pay any VAT that is due. You can do this by direct debit, credit card or cheque.
How to submit a vat return online
If you are a business owner in the United Kingdom, you are required to pay Value Added Tax (VAT). Fortunately, you can now submit your VAT return online. Here’s how:
1. First, you need to register for an account with HM Revenue and Customs (HMRC). You can do this by going to their website and following the instructions.
2. Once you have registered, you will be able to login to your account and access the VAT Online Services.
3. In the VAT Online Services, you will need to select the “Submit Return” option.
4. On the next page, you will be asked to enter your VAT period. This is the date range for which you are submitting your return.
5. Once you have entered your VAT period, you will be able to enter your VAT liability. This is the total amount of VAT that you owe for the period.
6. Finally, you will need to make a payment for the amount of VAT that you owe. You can do this using a debit or credit card, or by making a bank transfer.
7. Once you have made your payment, you will receive confirmation from HMRC.
Consequences if you don’t pay VAT
If you don’t pay VAT, you may be subject to a number of consequences, including:
-You may be liable for interest and penalties on the unpaid VAT.
-Your business could be barred from tendering for public sector contracts.
-Your business could be suspended from trading.
-You could be prosecuted and fined.
Paying VAT and submitting a VAT return can seem like a daunting task, but it doesn’t have to be. With a little bit of research and the help of an accountant, you can easily submit your VAT return online. And once you get the hang of it, it’ll be a breeze!