18th August 2021 Posted by - Alexander Accountancy
The VAT annual accounting scheme is open to most businesses with a turnover of up to £1,350,000 per year.
The main benefits of the scheme include the requirement to file only one VAT return per year.
This can significantly reduce the amount of administration time and the associated cost of preparing and submitting quarterly VAT returns.
Businesses can only apply to join the annual accounting scheme if they anticipate that their taxable supplies in the next 12 months will not exceed £1,350,000. The £1,350,000 figure excludes VAT but includes standard, reduced and zero rate VAT supplies.
Businesses can join the scheme either at the same time as applying for a new VAT registration or at any subsequent time. If the business has been registered for less than 12 months then an estimate can be used for future turnover.
In order to qualify to join the scheme, the business must be up to date with VAT payments, solvent and new to the scheme. In addition, the business cannot be a division of a company or a part of a group of companies.
Businesses that are in the scheme can continue using it until their taxable supplies exceed £1,600,000.
Source: HM Revenue & Customs Tue, 10 Aug 2021 00:00:00 +0100
