Accounting support for VAT in England

The deadline for filing a VAT return is usually one calendar month and 7 days after the end of the reporting period.

Generally, if you charge your customers less VAT than you paid on your purchases, Her Majesty’s Revenue and Customs (HMRC) will refund you the difference on application. You can apply for a VAT refund once a calendar year. The refund is only available for goods purchased no more than 3 years before VAT registration or services provided no more than six months before registration. These goods and services must be used to support the business’s own activities. They cannot be goods for further sale. They must be reflected in the company’s financial statements and be on the company’s balance sheet at the time of registration and VAT refund.

Late filing and payment of VAT will result in penalties and interest on the amount of tax owed. If you are 16-30 days late, you will receive the first penalty of 2% of the VAT due on the 15th day of the delay. If the payment is 31 days overdue, a 2% penalty is added to the 15-day penalty. If the payment is overdue by more than 31 days, it must also be paid in addition to the first two penalties. You will be charged another daily penalty of 4% per annum for the overdue period.

If the place of supply of the service is the EU (the standard rule), then VAT does not arise. For an English company, this will be an export of the service, and for a European company, it will be an import. In this case, your European partners will not pay VAT, and you will not be obliged to obtain such a number.

Thus, the VAT reporting procedure in England is designed in such a way that any business can submit reports independently. We recommend learning more about how to do this on official resources: Basic Principles and Legislation: https://www.gov.uk/how-vat-works