Who must register for VAT?

If your turnover (your sales or fee income ie., the total value of everything you sell or supply that isn’t VAT exempt) exceeds £81,000 per annum (in 2014) then you are required by law to register for VAT.

1. VAT registration - if you are VAT registered please enter your VAT registration details under the "business section" (including your first period end VAT return date - all subsequent quarterly VAT returns will follow this date). Also, if you wish, you can "upload" a copy of your VAT registration certificate - select "certificates" from the relevant menu.

If you wish to use the "flat rate scheme" more information is available here.

If you are not VAT registered and uncertain as to whether you ought to be VAT registered then please contact us.

2. VAT returns - It is important that your VAT returns are completed and signed by you within the stipulated time frame.

Accounting Made Easy will produce the figures for the VAT return in an identical format to the VAT return (please remember "garbage in = garbage out"; as the VAT return is calculated from the cashbook entries your cashbook must be accurate and up to date for the VAT period covered - if this is not the case your VAT return will be wrong). To prepare your VAT return:

(i) select VAT (from relevant menu);
(ii) ensure that you have selected the correct VAT period;
(iii) click "Submit" and you will see an analysis in the same format as the VAT return. These figures should be copied into your VAT return. Please note that the default VAT return in Accounting Made Easy is prepared on a cash basis i.e. actual amounts of VAT received/paid in the relevant quarter. Therefore it is important that you ensure payment of invoices (as per your bank statement) are input promptly and accurately.

The "cash basis" for calculating VAT applies to businesses with an annual turnover of less than £1.35 million. If your annual turnover exceeds this amount you must use the "accruals basis" to calculate the figures for the VAT return.

Note: Reasonability check of VAT payable to Customs and Excise - unless you have incurred VAT on expenses the VAT payable will be the amount received in respect of your invoices in the relevant VAT period.

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