In the UK, several businesses prefer to hire a professional to handle their VAT returns in the UK because the importance of getting the process right cannot be overstated. Many people are curious to know how much accountants charge in the UK for a VAT return. You may want to guess, but the answer relies on the specific requirements of the business, which include the complexity of the business, the number of transactions, frequency, and other services that may be required, such as bookkeeping or corrections.
Factors That Determine the Fee
Business Size & Complexity
Generally, accountants could charge relatively small fees for smaller businesses whose VAT returns are simple. However, the time, cost, and expertise required for this service may likely increase depending on the business size, the volume of goods imported, cross-border trade, or the level of errors and adjustments needed.
Frequency & Volume
High-volume or monthly VAT returns are expensive than quarterly returns. The more the transactions, the higher the level of account reconciliation with various sets of records to ensure accuracy and alignment with internal records and invoices.
Additional Services
Some accountants also help you prepare your return, deal with bookkeeping, account reconciliation, spot any potential error issues, and facilitate correspondence with HMRC. All these extra services raise the fee.
Estimate Ranges
Although there are differences in the charges, in the UK, the amount ranges from:
- Small/simple returns: £100-250 per return.
- Medium complexity: £250–£500
- Large firms or high complexity: £500 and above.
How to Pay UK VAT
After you fill out a VAT return, you become liable to pay VAT to the HMRC. Here’s the process to pay UK VAT:
1. Via Direct Debit: This is the simplest option, which automatically makes HMRC collect the amount due.
2. Online Bank Payment: This is done through the online portal of your bank and HMRC’s bank details.
3. BACS / CHAPS: This involves bank-to-bank transfers for large amount transactions.
4. Debit or Credit Card: In this case, this can be used on the HMRC portal.
5. At your bank branch: This is not common in recent times, but involves a pay-in slip.
The payment must be made by the same deadline as submitting VAT returns, which is usually one calendar month and 7 days after the end of an accounting period.
How to Recover VAT UK
There are several advantages to being VAT registered, one of which is the opportunity to reclaim VAT in the UK on allowable business expenses paid to the business. Here’s how:
Check Eligibility
The VAT can be reclaimed on goods and services purchased for business purposes, excluding those used for personal activities.
Keep Proper Records
You must have valid VAT invoices and receipts to demonstrate VAT paid, as well as clear records of how the expense was explicitly used for your business.
Submit with Return
At any time you file your VAT return, you add the paid VAT as input tax and the collected VAT as output tax. When there is more input than output, you get a refund without any stress.
Time Limits
Within a period of 4 years, you must reclaim VAT on goods purchased, depending on the time of supply. Misplaced invoices can reduce the likelihood of payment delays.
Conclusion
Having the correct information about the amount that accountants charge for VAT returns, UK VAT payment methods, and VAT recovery in the UK is vital to the success of any business registered for VAT. The amount charged differs, but by employing a professional accountant, you can save time, minimise mistakes, and be fully compliant with the HMRC regulations.