VAT - Substantial Traders

Question 1

Who are substantial traders?

Answer 1

Those with a VAT liability exceeding £2.3 million per annum. They must make payments on account of VAT

Question 2

For substantial traders, when are payments on account due?

Answer 2

At the end of months 2 and 3 in every quarter

Question 3

For substantial traders, what are the payments on account based on?

Answer 3

1/24th of the annual liability for the previous year

Question 4

What will the balancing payment be?

Answer 4

Any VAT liability for that quarter not accounted for at the end after calculating the payments on account for months 2 and 3