Same time next year

HMRC

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:

• make advance VAT payments towards your VAT bill - based on your last return (or estimated if you’re new to VAT)

• submit 1 VAT Return a year

When you submit your VAT Return you either:

• make a final payment - the difference between your advance payments and actual VAT bill

• apply for a refund - if you’ve overpaid your 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).

That sounds like a plan. My fascinating life, eh?