- VAT Annual Accounting Scheme allows businesses to submit 1 VAT return a year
- Businesses still need to make advance VAT payments towards their VAT bill
- Businesses that regularly reclaim VAT may not benefit from the scheme as they can only get 1 refund a year
- Eligibility to join the scheme is required
- Businesses can join online or by post
- Confirmation of joining the scheme is sent to the VAT online account or by post
- Businesses can leave the scheme at any time but must leave if they are no longer eligible
- There is a 12-month waiting period before rejoining the scheme
- Eligibility for the scheme includes being a VAT-registered business with estimated VAT taxable turnover of £1.35 million or less in the next 12 months
- Exceptions for using the scheme include leaving in the last 12 months, being part of a VAT registered division or group of companies, not being up to date with VAT Returns or payments, and being insolvent
- VAT Return is due once a year, 2 months after the end of the accounting period
- Advance payments towards VAT bill must be made monthly or quarterly during the accounting period
- Final payment is due within 2 months of month 12
- Payment amounts are either 10% or 25% of estimated VAT bill based on previous VAT returns or estimates if new to VAT
Source: mcl.accountants
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
