If you don’t know what a VAT Account should look like, don’t worry. This blog is here to help you out. Continue reading to learn more.
Things to know about VAT Account: What a VAT account should look like
So, you have started your business and even made your first sale. This is an exciting time, but you are probably wondering what your VAT account should look like. Remember that if you are a VAT-registered business with HMRC, you must keep records of all sales and purchases by your business. You are equally required to keep a separate summary of all your VAT in your VAT account.
How do I register for VAT?
If you are a business or an entrepreneur, you may register for VAT online, including partnerships as well as groups of companies. You will need to create a VAT online account – equally referred to as the ‘Government Gateway account’.
You may appoint an agent to enable you to register for a VAT account or register via post. Upon registering for a the account, you will receive a VAT number from HMRC, which will be used in all transactions and dealings with HMRC.
What is MTD and how does it work?
VAT registered businesses with taxable turnovers of over £85,000 should equally follow the rules from Her Majesty Customs and Revenues on ‘Making Tax Digital for VAT’.
If you have signed up for the Making Tax Digital, the records you must keep are not different for any VAT-registered business. However, you’ll need to keep some digital records.
You may be wondering what your VAT account should look like, but all of them are standardised and accessible via the HMRC website. This article will look at how to register for a VAT account and what a VAT account should look like.
7 Rules on what should a VAT account look like
1. Using HMRC Gateway to file VAT online
You should sign up or sign in to your VAT account using the HMRC Government Gateway account. The first rule of the VAT account is that you should sign in using your government gateway account, and you will arrive at the landing page.
2. Choosing the right account when signing up in HMRC Gateway
When you sign up for the HMRC account, you should ensure that you choose the right account and answer the questions related to adding the tax correctly. Your VAT account should have a white landing page and you should determine whether you are doing business in the UK.
3. Finding help in using HMRC Gateway
Your landing page has a range of information in the last icon for any questions or helps you may need.
It should have GOV.Uk on the top left-hand corner for questions related to your account, technical glitches, and other information that may be necessary for your HMRC account.
4. Knowing the different services offered in HMRC Gateway
HMRC will ask you several questions related to tax payments and other questions that will have a range of options, which you can select or highlight with a black dot. On your landing page, the top left-hand corner should have the icon labeled “Your HMRC services”.
5. Managing VAT account in HMRC Gateway
From your landing page, you should be able to access your account, manage your messages and track your forms. The landing page for most VAT accounts is pretty similar, as they have the same icons and tabs that are pretty much used by most businesses.
The landing page should have very little information about you, but rather what service you intend on using at the time when you are logged in to the Government Gateway Account.
6. Collecting and paying VAT through MTD
There should be a “Making Tax Digital” icon on the bottom left, where you can view your VAT account.
Every VAT account has this icon as HMRC is currently encouraging entrepreneurs and businesses to digitize the process of collecting and paying their VATs. It is one of the must-have features of any VAT account.
7. Knowing the next VAT due
Under the “Manage your VAT” icon, you can view when your next payment is due as well as VAT certificates. This is similar for all VAT accounts, regardless of what type of business you are. Your business tax account can be accessed under the icon “Your VAT account”.
There might be slight differences when you are registering your business, but the VAT account from HMRC has a similar look and feel for businesses and entrepreneurs.
Frequently Asked Questions
When is my next tax bill due?
You may be an entrepreneur that has very little time and needs to know when your next VAT bill is due. Go to “Your VAT account”, and the icon immediately below will tell you exactly when you must pay your next tax bill.
When should I sign up for my VAT account?
Make sure you do not sign up seven days before and up to five days after your due date. If you make your payments via direct debit, you are required to keep your account open to make payments twice.
When can I sign up to make tax digital?
If your taxable turnover is less than £85,000, you are required to sign up for making tax digital. You need to submit your VAT using the right software and save all digital records for up to ten years to ensure HMRC has access to all your records.
Reporting and paying VAT are different and how you link your purchases to your VAT account differs based on the software you use. However, some inescapable features are accessible by all businesses and entrepreneurs.
Some businesses may choose to report or justify expenses differently, but they ultimately got to the HMRC Gateway account to pay their bill.
Your VAT account should be organised so you have all the relevant information for regulators and HMRC as needed. This will ensure that you keep the right records at all times, and there is helpful accounting software to automate such tasks.
As a result, your VAT account can enable you to make an account for payments without very much effort.
This is why Sterlinx Global is here to help you with anything VAT related.