Finance - VAT Returns Overview
As of 1 April 2022, all UK VAT registered businesses are required to use the Making Tax Digital service to keep their records digitally and to use software to submit their VAT returns. There are several different VAT schemes run by HMRC - Easify will support the main 2 schemes:
1: Standard VAT Accounting – where the VAT is due on the invoice or purchase date.
2: Cash VAT Accounting – where the VAT is due when the invoice or purchase is paid.
Most UK business use the Standard VAT Accounting model, however if your VAT taxable turnover less than £1.35 million you can use the Cash accounting scheme.
This helps prevent you from having a large VAT liability and having to make a large VAT payment to HMRC when you haven’t yet been paid for those jobs.
