VAT registration requirements

All businesses trades within and/or with the UK must follow the VAT registration requirements. Value Added Tax (VAT) stands for Value Added Tax. You must register for VAT with HM revenue and Customs if your annual sales exceed the VAT registration thresholds.

VAT registration thresholds in the UK

Below is the VAT registration requirements and threshold with effect from 1 April 2017.

scenarioAnnual sales threshold
1VAT registration£85,000 and more
2Distance selling into the UK registration£70,000 and more
3Bringing goods into the UK from the EU£85,000 and more
4VAT deregistration£83,000 and less
5To complete the simplified EC Sales list£106,500 or less & supplies to EU countries is less than £11,000
source: GOV.UK

Post VAT registration requirements

Once your business – a sole proprietorship or partnership or your company is successfully registered for VAT in the UK, HMRC will issue a VAT certificate to your business. In the VAT certificate, you will see your default VAT return quarter end date. Usually, it is a standard 3 months per quarter period. For example, if HMRC states your VAT return quarter end date is 31 March then you would have one month and 7 days to submit VAT return for 1 Jan to 31 March to HMRC.

You may apply to HMRC to change your VAT return quarter end date. For example, you can apply to join VAT annual accounting scheme if your sales are less than £1.35 million or less per year. Once you joined the VAT annual accounting scheme, you would only require to submit one VAT return per year.

Other compulsory filings

If your business is a limited company or limited liability partnership (LLP) registered with Companies House, you must comply with the UK company law.

You must prepare and submit the the documents to Companies House in addition to your VAT return to HMRC.

You can submit your company documents online. You would require your company’s authentication code to do so. The authentication code is the electronic equivalent of your company’s director(s) signatures. Hence, you must keep it safe.

Companies House has also created an interim paperless filing service to accept documents which would normally require a live signature during COVID-19 pandemic. You can easily upload your documents to the Companies House website.

If you require help with your company’s filings, contact our accountants. They will be more than happy to assist you.

Payback the overpaid Self Employment Income Support Scheme Grant

HM Revenue and Customs (HMRC) published guidance seeking self-employed individuals to tell HMRC and payback the overpaid Self Employment Income Support Scheme Grant if they received the grants but were not entitled to it.

The Government use the Self Employment Income Support Scheme Grant to support self-employed individuals during this Coronavirus (COVID-19) outbreak.

HMRC is asking you to report any overpaid Self Employed Income Support Scheme grant within the notification period given to avoid penalty. This includes If you received the Self employment income support scheme grant from HMRC but you were not entitled to.

You must pay back the grant you were not entitled to HMRC.

Inform HMRC about the Self Employment Income Support Scheme Grant overpayment

You must notify HMRC within 90 days of you received the grant on or after 22 July 2020 and you have not repaid it.

If you received the grant before 22 July 2020 then you must inform HMRC by 20 October 2020.

Likewise, if you have overclaimed the Coronavirus Job Retention Scheme grant, you must notify HMRC and pay back the money.

Publishing details of deliberate defaulters (PDDD)

HMRC may publish your details on the Publishing details of deliberate defaulters (PDDD) list for deliberately not notify HMRC of the overpaid Self Employed Income Support Scheme Grant. You details will remain online for 12 months. See the factsheets here CC/FS13.

You may check the current PDDD list online here.

Companies House filings during COVID-19 pandemic

Companies House also provide support to UK businesses during COVID-19 pandemic. Your company’s account filing deadline is extended for an additional 3 months. This will help you to avoid a late filing penalty if you are unable to deliver your company accounts on time during this pandemic. You do not need to do anything. You just need to go to Companies House website to check your new filing deadline.

On the same note, you would have 6 weeks to file your confirmation statement. Likewise, for the events driven filings, you will have 42 days (6 weeks) to notify Companies House instead of the usual 14 days filing deadline. For example, you moved to a new office and this office is also your registered office for your company. In this case, you have 6 weeks to notify Companies House.

In addition, Companies House also created an interim paperless filing service to accept documents which would normally require a live signature.

You are encouraged to submit your documents to Companies House digitally. You can use the web filing service to file the following documents to Companies House.

To file online, you would require your company’s authentication code. The authentication code is the electronic equivalent of your company’s director(s) signatures. Keep safe your authentication code.

If you require help with your company’s filings, contact Our accountants. They will be more than happy to assist you.

Overclaimed Coronavirus Job Retention Scheme grants

HM Revenue and Customs (HMRC) published guidance on potential penalties to businesses with overclaimed Coronavirus Job Retention Scheme (CJRS) grants. The Government use the Coronavirus Job Retention Scheme to help businesses to retain their staff during this Coronavirus (COVID-19) outbreak. Sometimes, mistakes could happen.

HMRC is asking you to report any overclaimed CRJS grants within the notification period given to avoid expensive penalty. This includes If you received the CRJS and you were not entitled to.

You must pay back the Coronavirus Job Retension Scheme grants you are not entitled to HMRC.

Report overclaimed Coronavirus Job Retention Scheme grants to HMRC

You must notify HMRC within 90 days of you received the CJRS grants if you have not repaid it.

In some circumstance, you may be entitled to the CJRS grants but later due to change of circumstance you no longer entitled to it, in this instance, you have 90 days to inform HMRC. For example, your furloughed staff left your business for good and you continue to claim the CJRS grants for that staff.

The latest date you must report your overclaimed CJRS grants to HMRC is 20 October 2020.

Likewise, if you have been overpaid under Self Employment Income Support Scheme, you must notify HMRC and pay back the money.

Publishing details of deliberate defaulters (PDDD)

HMRC may publish your details on the Publishing details of deliberate defaulters (PDDD) list for deliberately not notify HMRC of the overclaimed CJRS grants. You details will remain online for 12 months.

You may check the current PDDD list online here.

Companies House filings during COVID-19 pandemic

Companies House also provide support to UK businesses during COVID-19 pandemic. Your company’s account filing deadline is extended for an additional 3 months. This will help you to avoid a late filing penalty if you are unable to deliver your company accounts on time during this pandemic. You do not need to do anything. You just need to go to Companies House website to check your new filing deadline.

On the same note, you would have 6 weeks to file your confirmation statement. Likewise, for the events driven filings, you will have 42 days (6 weeks) to notify Companies House instead of the usual 14 days filing deadline. For example, you moved to a new office and this office is also your registered office for your company. In this case, you have 6 weeks to notify Companies House.

In addition, Companies House also created an interim paperless filing service to accept documents which would normally require a live signature.

You are encouraged to submit your documents to Companies House digitally. You can use the web filing service to file the following documents to Companies House.

To file online, you would require your company’s authentication code. The authentication code is the electronic equivalent of your company’s director(s) signatures. Keep safe your authentication code.

If you require help with your company’s filings, contact Our accountants. They will be more than happy to assist you.

%d bloggers like this: