Understanding VAT in the UK: A Guide for Mansfield Businesses

Navigating VAT and tax obligations can be one of the more daunting aspects of running a business. That’s why many local entrepreneurs turn to small business accountants like Brealey & Newbury for guidance. With the right support, you can stay compliant, avoid costly penalties, and make the most of every allowance. Whether you’re newly registered or reviewing your VAT processes, understanding key dates and rules is vital for success.

VAT Registration and Return Deadlines

If your business’s taxable turnover exceeds £90,000 (as of April 2024), VAT registration is compulsory. Once registered, you must submit VAT returns either quarterly or annually, depending on your scheme.

Key VAT Deadlines:

• Quarterly VAT returns: Due 1 calendar month and 7 days after the end of your accounting period

• VAT payment: Must also be made by the same deadline

• Annual Accounting Scheme: One return per year, with advance instalments due throughout the year

  
  

Accounting professionals for small businesses can help you choose the right VAT scheme, maintain accurate records and ensure you meet submission dates with ease.

Self-Assessment Tax Return

If you're a sole trader or part of a partnership, the self-assessment system is how you report your income and calculate your tax liability.

Key Deadlines:

• 5 October: Deadline to register for self-assessment if you're newly self-employed

• 31 January: Online filing deadline for the previous tax year and final tax payment due

• 31 July: Second payment on account deadline (if applicable)

Working with business tax advisors ensures you don’t miss deductions or underpay, both of which can lead to HMRC investigations or late payment penalties.

PAYE and Real Time Information (RTI)

If you employ staff, your PAYE obligations must be met in real time. This means reporting payroll information to HMRC every time you pay your employees.

Key Dates:

• On or before each payday: Submit Full Payment Submission (FPS) to HMRC

• Monthly or quarterly: PAYE payments are due to HMRC by the 22nd of the month (or 19th if paying by post)

Financial experts can assist with payroll setup, automate RTI reporting and ensure accurate tax and National Insurance calculations.

Corporation Tax for Limited Companies

Limited companies must keep on top of corporation tax responsibilities, from filing annual accounts to paying tax on time.

Key Dates:

• Within 3 months of starting to trade: Tell HMRC your company is active

• 9 months and 1 day after accounting period ends: Corporation tax payment deadline

• 12 months after accounting period ends: File company tax return (CT600)

A trusted accountant for small businesses can take the hassle out of this process, ensuring your company pays the right amount and meets filing obligations.

Tips for Staying Compliant

• Use accounting software that’s compatible with Making Tax Digital (MTD)

• Keep digital records of all sales, purchases and expenses

• Review deadlines quarterly to avoid surprises or last-minute scrambles

• Schedule time each month to review your finances and upcoming submissions

• Work with a financial expert who understands the needs of local businesses in Mansfield

  
  

Contact Brealey & Newbury: Small Business Accountants You Can Rely On

Understanding VAT and tax requirements doesn’t have to be overwhelming. At Brealey & Newbury, our team of dedicated small business accountants in Mansfield is here to support you with clear advice, timely reminders and expert insights tailored to your business.

Get in touch today for a free consultation and discover how we can help you stay compliant, efficient and focused on what you do best.