Typically, the due date for VAT Returns is based on your initial registration, which often does not align with your business activities or decisions. Here are a few reasons why you might want to adjust your VAT Return date:
Cash Flow: VAT payments can put a strain on your cash flow, especially if they are due at the same time as your rent bill and Corporation tax. By moving your VAT Return date by a month or more, you can alleviate some of this financial pressure.
Year-End Alignment: Aligning your VAT quarters with your fiscal year-end can simplify things for everyone. This alignment can make your records almost ready for accounting once your VAT return is done.
Convenience: During particularly busy periods in your business, you might not want to deal with the VAT return process simultaneously. Your business should function to suit you, so if pushing things back by a month will help and there won’t be any negative consequences, then it’s definitely an option you can consider
How to Change Your VAT Return Date
To alter your VAT Return date, follow the steps below:
- Log into your Government Gateway account, where you usually file your VAT return.
- Once logged in, select VAT as the service you wish to use.
- Click on ‘Change Registration Details’.
- Then click on ‘Change VAT Return frequency’.
- Answer the question about VAT on purchases.
- Choose the appropriate VAT return period ends.
- Follow the remaining instructions to finish the process
After applying for the amendment, you will receive a confirmation from HMRC of your new quarter. You might have to submit your next return as per the usual schedule before the new one comes into effect. Always make sure to verify this.
If you need further assistance in deciding whether changing your VAT return date is a beneficial move for your situation, or for any other queries, feel free to reach out. We’re here to assist you
