Get Uk Hmrc Tax Return

Value-added tax (VAT) is a flat tax levied on an item. It is similar to a sales tax in some respects, except that with a sales tax, the full amount owed to the government is paid by the consumer at the point of sale. With a VAT, portions of the tax amount are paid by different parties to a transaction.

If you've charged more VAT than you've paid, you must pay the difference to HMRC . If you've paid more VAT than you've charged, HMRC will usually repay you the difference.

Typically, you have to pay the value-added tax at the time of purchase, and then apply for a refund from the shop. Usually, your purchase must be over a certain amount in order to qualify for a VAT refund.

How to Tell the Difference Between a Tax Return and a VAT Return. VAT is charged and recovered on transactions, both income and expenditure. This is different from your annual tax return which is based upon the declared profits of your business over your accounting year.

Normally if you make a compensation payment to an unhappy customer, it's outside the scope of VAT. In other words because it doesn't relate to a supply of goods or services it shouldn't affect your VAT bill.

If the products or services are subject to the 20% standard rate of VAT: You must add 20% to the price you charge for the goods or service. You can do this by multiplying the price you charge by 1.2.

If HMRC is late in paying you, you may be entitled to repayment interest on any VAT that you are owed. Repayment interest is paid at the Bank of England base rate minus 1%, with a minimum rate of 0.5%.

A VAT Return is a form you fill in to tell HM Revenue and Customs ( HMRC ) how much VAT you've charged and how much you've paid to other businesses. You usually need to send a VAT Return to HMRC every 3 months.