Are VAT Returns Quarterly?

By Rob McCann, Director at The VAT People

Your ‘accounting period’ is the time range for completing your VAT returns. These are normally due quarterly (every three months), but this can vary depending on the supplies you make, as we explore below.

Any firm that makes VATable supplies must understand how to meet its VAT duties, which include the timely filing of VAT returns. Late submissions of VAT returns, as well as late processing of payments owing to HMRC as a result of these returns, may result in penalties.

A VAT return is a mechanism for a taxpayer to notify His Majesty’s Revenue and Customs (HMRC) of the amount of VAT charged on supplies made during the relevant period, as well as the amount of VAT incurred while making taxable supply.

When must I submit my VAT returns?

You must register for VAT if:

• Your company’s total VAT taxable turnover in the previous 12 months was more than £85,000 (the VAT threshold), or
• You expect your company’s turnover to exceed £85,000 in the next 30 days alone.

You can also register voluntarily if the value of your taxable supplies is less than £85,000.

Furthermore, you can register for VAT before you begin making taxable supplies in order to recover any input VAT on your start-up costs.

Making VAT returns

After registering for VAT, you must submit quarterly VAT returns to HMRC, even if you have no VAT to pay or refund (i.e. these returns are zero).

Businesses that make supplies that attract VAT at the zero rate and receive frequent VAT refunds may submit monthly returns rather than quarterly, which will help with cash flow.

Subject to certain conditions, a business may join the annual accounting scheme, in which a single VAT return is due for a calendar year, but advance payments towards the business’s VAT bill are due throughout the year – the value of these payments is based on the previous year’s liability.

Submission deadlines

The deadline for submitting a VAT return is usually one calendar month plus seven days after the end of an accounting period. This is also the HMRC payment deadline.

For example, for periods ending in March, the return and corresponding payment are likely to be due no later than May 7th.

You should allow enough time for the money to reach HMRC’s account, which is typically three to six working days later, though this can vary, especially if payment is made from a non-UK bank account.

You may access your account on the government website and confirm:

• When your VAT returns are due
• Understand when your payment must clear HMRC’s account check, as well as how to appeal fines
• Set up an email reminder for your VAT return if you use the VAT yearly accounting plan

Understanding your company’s VAT duties is critical for being compliant and avoiding penalty points or fines. Furthermore, you should understand your VAT duties in order to discover strategies to save your company time and money. Speaking with VAT consultants can enable you to deal with challenging HMRC and VAT concerns.