If you’re a business, you need to know when the value of goods is added to your VAT return. It needs to be reported on your VAT return, and if there has been a delay, it could result in an HMRC investigation. Keeping track of the date deadlines for VAT returns might seem difficult at first, but it is really not that hard. This blog post will show how easy it can be with just a few simple steps and the right tools. The information provided in this post is updated for 2017-18.
The introduction of the new VAT return format for 2016-17 was a big change, with headline changes including:
VAT returns are now paper free. You will no longer need to print and send your VAT return to HMRC
The 10% standard rate is now a flat rate, meaning you don’t have to pay the 10% special rate if you’re applying a reduced rate of VAT to your sale. It will be relevant for all sales made on or after 6 April 2016, but not sales made before that date. This new flat rate does affect businesses that make significant, often predictable sales.
The date for VAT return must be reported on the form using either the month and year, using 1 January 2007, or the day and month as it is done currently.
The example below shows how this works. The business started trading on 1 January 2006, but will now report their VAT return on 30 April 2017. [DATE] in this example shows the date of entry into business with HMRC; so in this case, 5th January 2006.