How to File VAT Returns Online?
A Value added tax (VAT) return highlights the amount of VAT a business is liable to pay Her Majesty's Revenue and Customs (HMRC). A VAT return must encompass the following information of a business:
• Total sales for an accounting period
• Total purchase for an accounting period
• Total amount of VAT payable and the amount of VAT a business can claim
• Amount of VAT refund
Typically, a VAT return is submitted to HMRC every 3 months and this time period is referred to as an accounting period. An individual must submit a VAT return to HMRC even though he/she is not liable to pay VAT or reclaim VAT. Also, an individual can check their VAT payment deadlines and return schedules in their VAT online account. A VAT online account provides information about:
• When the Value added tax returns are due
• When the VAT payment should clear HMRC’s account
The cut-off date for filing a VAT return online and disbursing the amount to HMRC is 1 calendar month and 7 days post the completion of an accounting period – an individual should give sufficient time for the amount to reach HMRC’s account.
Generally, businesses registered for Value added tax (VAT) submit their returns and payments 4 times a year to HMRC. However, under the Annual Accounting Scheme businesses are eligible for:
• Submitting one VAT return per year
• Making VAT payment in advance towards the VAT bill – this can be estimated on the basis of last year return
When a business submits its Value added tax return the business either:
• Makes the entire payment – the variance between actual VAT bill and any advance payments
• File for a VAT refund in case the VAT amount has been overpaid
However, the Annual Accounting Scheme is not suited for businesses that frequently reclaim VAT as, under the Annual Accounting Scheme, the business will be eligible to get one refund a year
How Nomisma Solution VAT Return Software can help businesses
Founded in 2013, Nomisma is cloud-based accounting software. The software is capable of offering business services such as Accounts Preparation, Bookkeeping, Company Secretarial, Corporation Tax, Payroll, and Self-Assessment. The software is apt of HMRC VAT return filing and its in-build VAT return tax timeline keeps full track of when a particular business has to pay VAT and how much VAT the business owes. Nomisma Solutions is ideal of small-businesses in the United Kingdom and enables businesses to submit their VAT payment online to HMRC. Additional services supported by the software encompass cash basis, flat rate scheme, and EC services
Apart from being an excellent software for Value added tax, Nomisma Solution offers 24/7 telephone support and free e-mail assistance, both at a cheap cost recurrent subscription. In order to use the software, each business will be provided with an ID with a one-month free trial. Within a few minutes the business can create a user account and begin using the software application. Since, Nomisma Solution is Cloud-based online accounting software, in case there is any modification to a business’ VAT scheme, the software automatically makes the required correction.
Few fundamentals that accountants/business users must be aware of are:
• There are dissimilar Value added tax rates depending on the nature of the business – these encompass standard rate of 20%, reduced rates of 5%, and zero rate of 0%
• There are severe fines for miscalculations, comprising fines of 15% for undeclared miscalculations
• All Value added tax expenses cannot be reclaimed such as car purchase, client entertaining, or non-business use
In order to submit an online Value added tax return, users can just click on ‘reports’ and generate a Value added tax report. In case the user is running the report for the first time, he/she will be taken to the VAT settings options where the user can choose from a Cash Accounting or Flat rate scheme and also update the VAT period. By selecting a specific period, users can view the VAT transaction which qualify for that particular period and also cross-check the payable VAT amount. Once the figures have been tallied, users can click on ‘submit VAT return’ to complete the online filing process. Additionally, the software provides an option to print the return on paper or save it as a .pdf file
Nomisma VAT Return Software Free Trail
The company offers 1 month free trail for both accountants and business users. Try Nomisma VAT Return Filing Software.