Usually, VAT-registered businesses submit their VAT Returns and payments to HM Revenue and Customs 4 times a year.
With the Annual Accounting Scheme you:That sounds like a plan. My fascinating life, eh?
- make advance VAT payments towards your VAT bill - based on your last return (or estimated if you’re new to VAT)
When you submit your VAT Return you either:
- submit 1 VAT Return a year
- make a final payment - the difference between your advance payments and actual VAT bill
The scheme wouldn’t suit your business if you regularly reclaim VAT because you’ll only be able to get 1 refund a year (when you submit the VAT Return).
- apply for a refund - if you’ve overpaid your VAT bill