VAT - Annual Accounting Scheme

Question 1

Under the annual accounting scheme, how many VAT returns are submitted each year?

Answer 1

1

Question 2

Under the annual accounting scheme, when must the annual return be filed?

Answer 2

The annual return must be filed within two months of the end of the return period

Question 3

What can traders using the annual accounting scheme not take advantage of?

Answer 3

The additional seven days when filing a tax return

Question 4

VAT payments must still be made…

Answer 4

Regularly and electronically

Question 5

What is the first option for payments on account?

Answer 5

• 9 payments
• due at the end of months 4-12
• each payment is 10% of previous years VAT liability

Question 6

What is the second option for payments on account?

Answer 6

• 3 payments
• due at ends of months 4, 7 and 10
• each payment is 25% of previous years VAT liability

Question 7

When is a balancing payment (or repayment made)?

Answer 7

When the return is filed or three days later if paid by direct debit

Question 8

Who can join the annual accounting scheme?

Answer 8

Traders with under £1.35m turnover can join the annual accounting scheme