VAT Returns

1. How much VAT do I need to pay?

  • Tax Rate: There are three different VAT rates in the UK, 20% (Standard), 5% (Reduced rate), 0% (Zero rate). Please confirm with our Professional Accountant team if your goods and service is exempt from VAT or out of scope.
  • Taxable Turnover: Which is equal to (Output VAT – Input VAT). Output VAT is based on sales invoices. The amount most retail business receive has VAT tax included in the price. Input VAT is based on purchase invoices.

  • 2. When is the deadline for VAT return?

    You usually submit a VAT Return to HM Revenue and Customs (HMRC) every 3 months. This period of time is known as your ‘accounting period.’

    The deadline for submitting the return online and paying HMRC is usually the same - 1 calendar month and 7 days after the end of an accounting period. If this is your first time claim VAT Return, you will find the due date in HMRC letter.

    3. What documents do I need for VAT Return?

  • total sales or service amount in the accounting period
  • sales/output VAT
  • total purchase/import amount
  • purchase/import VAT
  • sales and purchase supporting documents

  • 4. How can I pay my VAT bill?

    You can pay VAT to HMRC electronically, eg through direct debit or internet banking. You can make the payment either from a UK bank account or from an overseas one.


    The above information and calculations are for illustrative purposes only. No liability is accepted by O’Brien S & Co Ltd for any actions or losses from investment in reliance on the information and calculations. Consult a qualified professional financial advisor before making any financial decisions. O’Brien S & Co Ltd holds the copyrights in all materials on the website. All rights reserved.

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