Annual accounting enables a business to file one VAT Return per year, with estimated monthly payments being made in the interim. The scheme avoids having to file as many returns, but does require careful management as it can leave businesses with a substantial liability at the end of the year if estimated payments prove to have been too low. The scheme is available to businesses with an annual turnover of less than £1.35m.
It is also possible to file monthly VAT returns. This is particularly suited to businesses that regularly receive refunds, as it assists cashflow.
If you require advice or would like to discuss how we might assist you, please contact us.