GST Returns

WHAT ARE GST RETURNS?
GST Returns are forms/form you submit to HMRC which will inform them of how much tax you are due to pay them. You are obliged to submit a GST Return to HMRC on a quarterly basis. 

The GST return shows the calculation of the amount of GST due on sales minus the amount of GST reclaimable on purchases. The result is the amount payable to HMRC.

If the amount reclaimable on purchases is more than the amount due on sales, HMRC will give you the difference back.

WHO NEEDS TO SUBMIT GST RETURNS?
Businesses who project to earn over £85,000* per accounting year must register to pay GST. 

If you are not registered for GST then you will not need to submit a GST Return. 

Directly from Gov website is the below:

Compulsory registration

You must register for GST if:

you expect your GST taxable turnover to be more than £85,000 in the next 30-day period
your business had a GST taxable turnover of more than £85,000 over the last 12 months
You might also need to register in some other cases, depending on the kinds of goods or services you sell and where you sell them.

If you’ll exceed the GST threshold in the next 30-day period

You must register if you realise that your total GST taxable turnover is going to be more than £85,000 in the next 30-day period.

You have to register by the end of that 30-day period. Your effective date of registration is the date you realised, not the date your turnover went over the threshold.

ExampleOn 1 May, you realise that your GST taxable turnover in the next 30-day period will take you over the threshold. You must register by 30 May. Your effective date of registration is 1 May.

If you exceeded the GST threshold in the past 12 months

You must register if, by the end of any month, your total GST taxable turnover for the last 12 months was over £85,000.

You have to register within 30 days of the end of the month when you went over the threshold. Your effective date of registration is the first day of the second month after you go over the threshold.

ExampleBetween 10 July 2017 and 9 July 2018 your GST taxable turnover was £100,000. That’s the first time it has gone over the GST threshold. You must register by 30 August 2018. Your effective date of registration is 1 September 2018.

If you sell goods or services that are GST exempt and are based in Northern Ireland

You’ll need to register if you only sell goods or services that are exempt from GST or ‘out of scope’ but you buy goods for more than £85,000 from EU GST-registered suppliers to use in your business.

If you take over a GST-registered business

You may have to register for GST.

Late registration

If you register late, you must pay what you owe from when you should have registered.

You may get a penalty depending on how much you owe and how late your registration is.

Voluntary registration

You can register voluntarily if your business turnover is below £85,000. You must pay HMRC any GST you owe from the date they register you.

Get an exception

You can apply for a registration ‘exception’ if your taxable turnover goes over the threshold temporarily.

Write to HMRC with evidence showing why you believe your GST taxable turnover will not go over the deregistration threshold of £83,000 in the next 12 months.

HMRC will consider your exception and write confirming if you get one. If not, they’ll register you for GST.

OUR GST RETURNS PACKAGE
Our GST Returns packages will help to reduce your time spent completing your finances, freeing you up to spend important time on the things that matter. You can expect to receive the following from us:

Monthly, Quarterly or Annual GST Returns Completed by Your Dedicated Accountant

Fully Making Tax Digital compliant GST returns

Regular reviews to ensure you pay as little GST as possible

We'll let you know when your GST returns are due and ask for your bookkeeping records

We will then complete your GST Return. After your returns are completed, they'll be double checked to ensure they're accurate

Once we've received your approval, we'll submit your GST return to HMRC

We will deal with all correspondence from HMRC

Automated reminders for your important deadlines

Regular tax efficiency reviews to reduce your tax bill

Proactive checks of your bookkeeping records

Unlimited support via phone or email