Reply With QuoteHas to be submitted electronically, so that will require some knowledge and compatible software (Xero/Sage etc)
If you're more a pen and paper type of guy, I'd suggest speaking with an accountant.
Not sure if this question has been asked before and can't seem to bring anything up using the search function. Being self employed and a sole trader is it easy to do you own VAT returns or is it a minefield and better left to the professionals
Thanks in advance
Has to be submitted electronically, so that will require some knowledge and compatible software (Xero/Sage etc)
If you're more a pen and paper type of guy, I'd suggest speaking with an accountant.
I wasn't aware that VAT had left.
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I wish it would ;-)Originally Posted by Robsmck
We use some free software called datadear (wtf!) but others are available. It takes the data from your excel spreadsheet and creates your vat return which it then submits electronically on your behalf.
It’s a bit off a faff but saves the expense of Xero/Sage.
I use VitalTax which sounds similar. Dead easy to set up and there are Youtube vids for guidance.
I was VAt reg and didnt use any software. Did the returns in my book as usual and entered the boxes' entries in the online thing.
I suppose it comes down to the number of transactions per quarter and then the time to do increases. I'd recomend doing it yourself to start with, then it is not a black art that you know nothing about should you outsource. I always regarded the VAT return day to be a fairly easy days work. To answer your question, it is easy to do without any software. Even if you make a hash of it you just correct it next time or some time. They dont send a mobile gallows round.
Depends how complex your business is whether you do it yourself or get someone else to do it for you!
As said it depends on what sort of business you run. If you're just selling your time (eg IT bod) then it's easy if you can run a spreadsheet. If you're buying & selling a lot of materials it could be quite hard work.
I do it online but I don't need to submit via software as I'm not signed up for Making Tax Digital for VAT. I'd avoid that if you can.
It is quite daunting when considered in the round, but in segments its not that bad. I run my numbers in an excel sheet configured to provide the numbers the HMRC want then fill out the boxes on the form online, I have come to this process in stages tho. My is a bit complex as i have 3 different rate of vat to levy/claim.
I have always done my own but I just used a simple spreadsheet for each month I had a friend create for me (I’m a photographer and have no interest in learning excel) I still do the working out on a sheet of A4 and double checked everything using a vat calc app which enabled me to quickly see the vat component of a number.
Accountants would probably cringe but working it out with pen and paper worked for me.
Now it’s ‘making tax digital’ I use quickbooks to submit the return, I still do a custom report for each month so I can do it my old way and use the sales/costs/vat component to do it my pen and paper method so I can compare with the quickbooks produced return before submitting.
Quickbooks has a steep learning curve but it’s not too bad for a non office the person to use, i still don’t trust it (or myself) as marking something the wrong type of transaction can make it count as income or something it shouldn’t. If you use it every week for running your business rather than every quarter then it’s probably much easier as you are not reacquainting yourself after not using it for a while.
If you are not a numbers person and hate computers then speak to an accountant or bookkeeper.
Xerox is 25 a month (less after VAT;-) ) and does a lot more than just VAT returns so I would maybe consider it unless only issuing a few invoices a month.
Another Vital Tax user, an Excel plugin that bridges my Excel spreadsheet with HMRC’s’ Making Tax Digital thingymabob. Just a few quid for the year.
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I’m not VAT registered and haven’t been for years, it’s my daughters salon that I do the VAT return for.
They don’t use quick books or any other accounting software, my wife dies the books and the accountants the accounts.
Yup, Vitaltax through excel is unbelievably easy!
Ha ha, you’ve talked me into giving it a go, thanks to all for the advice
Just to add, I basically only sell my soul with no selling to speak of so sounds like it should be relatively simple, any ideas what an accountant would charge to process my VAT for me
Last edited by LRB255; 20th May 2021 at 20:26.
That’s not possible anymore. Must be submitted via MTD software.
MTD is only required for turnover above £85,000.
A point to note - all VAT registered businesses have to go MTD from 1 April 2022
This is correct, and under MTD you need to submit VAT returns electronically using MTD-compatible software.
Additionally, there are requirements for digital record-keeping and digital links between all the components of your record-keeping software - no more cutting and pasting...
Doesn't stop you using spreadsheets but you'll need bridging software to upload and send your VAT return data to HMRC.
Most of the software packages mentioned already will take care of all of this for you and much more besides, and are reasonably affordable.
If you bank with the NatWest group, you should be able to get their FreeAgent package free of charge - this is aimed at small owner-managed businesses.
Last edited by DMC102; 20th May 2021 at 22:11.
Use Quick Books dead easy £24 a month inc VAT
What business are you in. Construction industry has now implemented Reverse Charge VAT where the main Contractor pays the VAT directly to HRMC
Last edited by hilly10; 20th May 2021 at 22:39.
We've used Xero for a few years now, it's very good & user friendly. Vat returns take an hour or 2 rather than half a day they used to.
I sell my time, with a few office type expenses every now and again going through the books. My Accountant offers a Sage subscription for £9/month and I complete that once a quarter from records I retain in an excel spreadsheet. Sage then creates and submits the VAT return as part of MTD. Piece of cake.
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Not a bad price for that, but it's just another expense to go onto all the others in running a small business.
Yes construction so only doing vat for expenses (accommodation, vehicle, fuel, tools etc)
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That sounds like a relatively painless option, thanks
I use Kashflow software for mine it’s very easy.
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