Submitting VAT returns on time is essential to avoid penalties and maintain a good standing with HMRC. For businesses working with us, there’s a clear and organised process that ensures timely submission of VAT returns every quarter. With clarity and transparency top of our working ethos, this guide walks you through the timeline for VAT submission, providing an overview of key deadlines and activities that happen after each VAT quarter ends.
The VAT Submission Timeline
1. VAT Quarter Ends
Client Action: Submit VAT documentation within 7 days
At the end of each VAT quarter, businesses need to gather all VAT-related documentation and provide it to their accountants. We require these documents by the 7th day after the quarter-end to ensure a smooth and timely filing process.
2. By Day 7: Records Received for Each Client
Action: If all records have been received, the reconciliation process begins. If there are missing documents, additional information is requested from the client.
Businesses are responsible for ensuring all their VAT inputs and outputs are recorded accurately. Not submitting documentation on time may delay the submission process, leading to potential penalties.
3. Day 7 to Day 28: Reconciling VAT Inputs and Outputs
Streamline Action: During this period, we reconcile all VAT inputs and outputs for each client.
Reconciliation is a critical part of the VAT process. It involves ensuring that the VAT collected from customers (outputs) and the VAT paid on purchases (inputs) are correctly recorded. This ensures that the final VAT return is accurate.
4. Day 28: Preparing Draft VAT Submission
Streamline Action: We’ll prepare a draft VAT submission for each client by Day 28 of the cycle.
Once reconciliation is complete, a draft of the VAT submission is prepared. Clients are advised on the amount of VAT due to HMRC.
5. By Day 30: Approval and Submission to HMRC
Client Action: Clients must approve the VAT submission before it is sent to HMRC.
After the draft submission is sent to clients, businesses have until Day 30 to approve it. Upon approval, Streamline will submit the final VAT return to HMRC.
6. By Day 30 + 7: Confirmation and VAT Payment
Client Action: By Day 30 + 7, clients are required to pay the VAT due to HMRC.
After the VAT return has been submitted, Streamline checks for confirmation of successful submission. At this stage, businesses must ensure that the VAT amount due is paid to HMRC no later than 7 days after the final submission.
Help us to help you
As you’ve seen, it’s a process that is always ongoing in the background for all clients. Timely submission of all VAT-related documentation is key to ensure there are no disruptions in the filing, submission and payment processes for each return across all of our clients.
If you have any questions about VAT submissions, reach out to us for further assistance. You can download a copy of our workflow for the VAT return process here.
