When navigating the VAT returns process meticulous attention to detail is essential for accurate submissions. Additionally, understanding the implications of late submissions is crucial. Here's a comprehensive guide.
To submit a VAT Return we recommend the following steps:
Ensure your bank statements reconcile to your accounts as at the date of the VAT return. E.g. if you are submitting Q1 for 1st April - 30th June your bank reconciliation should have been completed to the 30th June. This will help to identify any errors or missing transactions which helps to avoid missing out on reclaimable VAT due to incomplete records.
Run a VAT list to verify the accuracy of your information, including supplier details (name, VAT number), VAT type, and invoice dates. Use the 'Filter' option to run the report for the corresponding return dates. It is also possible to exclude zero-rated items from the VAT List focusing on those that will contribute to your claim, however all records should be checked initially to ensure the correct VAT type has been allocated.
The VAT List will categorise transactions into Payments and Receipts. Scribe will calculate the value of VAT on Payments minus VAT on Receipts to determine the balance due to or from HMRC. This amount corresponds to Box 5 on your VAT Return. Transactions with the VAT Type set to R: Refund won't be included in the final totals as these transactions relate to VAT received from (or VAT paid to) HMRC for a previous return.
Go to the VAT Menu and select HMRC Obligations. This screen returns the information from your VAT account held with HMRC and will show the dates of your returns, their status and when they were returned or are due.
Click to View the current claim and ensure the Box totals match to the checks you have made. If you need to review any details you can click to view the VAT 100, VAT List or Edit Payments at the bottom of the screen.
When you are happy with the figures click Submit to send the return data to HMRC. A screen will appear confirming the submission has been successful and the status of the return will update to 'filed' If you are due a VAT refund from HMRC this will be received in due course. If you owe VAT to HMRC separate arrangements must be made to make this payment (Scribe does not do this for you).
While accuracy is paramount prior to submission, if you find yourself submitting a VAT return beyond the deadline, be aware of potential penalties. The HMRC penalty points system is in place for late VAT returns. For detailed information on penalty points and potential penalties for late VAT return submissions, refer to the official HMRC guidance: Penalty Points and Penalties for Late VAT Return Submission.