Why should you give importance to efficient bookkeeping, and Vat Return Services?
by Benny Gala DNS Accountants
The importance of bookkeeping cannot be stressed enough. It cannot be denied that it is one of the most important
aspects of a business and the reasons, which are as follows are self-explanatory
It helps in giving a quick and efficient overview of the
profits and losses as well as the performance patterns.
Maintains a proper track record of where every single penny
Proper explanation to the tax authorities
in case of discrepancies arising in the future.
Bookkeeping comes in very handy in
case of filing of tax returns which are necessary
for every company. This brings us to our
next important factor of business- VAT
What is VAT?
Added Tax or VAT as is commonly known is, in the simplest terms, the tax
imposed by the UK government on the sales of goods and services. Any company
registered under the High Majesty’s Revenue and Customs (HMRC) has to pay this
tax to the government on a monthly or quarterly basis, the latter being the
Who pays it and
registered under HMRC pays a VAT on its goods purchased and sold once its
annual turnover crosses £ 85,000. The company needs to charge VAT on goods sold from
customers and pay VAT to the government on the goods bought. In an ideal
scenario, the VAT charged must roughly be
equal to the VAT paid by a company. However, the concept of VAT returns comes
into play in case there is a substantial amount of difference in the two amounts.
What are VAT returns?
has to file for VAT returns every 3
months. VAT returns refer to the amount of difference that arises between the
VAT charged and the VAT paid by the company. If the company pays more VAT than
what it charges, then the difference is refunded by the government after filing
for VAT returns. If it pays less than it charges, then the government recovers
the remaining amount from the company. Thus, while filing for VAT returns,
bookkeeping comes into action because that is the only means to keep track of the transactions of the last
few months and those are the financials referred to whenever a company files
for VAT returns.
How to file a VAT return?
registered for paying VAT, business is assigned to a “VAT stagger group” which
determines the months in which your payments are due. There are three stagger
Group 1- quarters ending in March, June, September, and December
Group 2- quarters ending in January, April, July,
Group 3- quarters ending in February, May, August and
The Vat filing and payment need to be done
before the 7th of every quarter month. Once you have your financial statements
and all the paperwork in place, you have to file the VAT
Return online on the HMRC website.
Along with VAT, another important
aspect to be given a lot of consideration is payroll accounting.
What is payroll accounting?
are a company, you are going to have employees, be it few or many. And if you
have employees in your company, you will
spend a considerable fraction of the company’s revenue on them too. They share a considerable portion of the company’s costs
and hence, maintaining a clear record of the money spent on them is essential
for accounting purposes. This very account of the money spent on the company’s employees is what comes under payroll accounting.
What all does payroll accounting
Every penny spent on the employees
comes under payroll accounting. The
major expenses, common to any company are:
Wages, bonuses, and
commissions to the employees
Employee health insurance premiums, and other such securities
Money spent on the employee’s paid holidays/ vacations/
pensions and other such benefits
Employer’s portion of Social Security taxes, Medicare tax,
unemployment tax, etc.
Get in touch with DNS Accountants in Bournemouth for VAT return services.
Created on Mar 23rd 2018 01:19. Viewed 923 times.