It’s a question we are often asked, “Does a bookkeeper also do the VAT returns?”.
The answer is ‘sometimes’! So it is always best to ask the question rather than assuming they will.
A bookkeeper’s role is to process a business’s sales invoices and purchase receipts, along with expense claims where relevant. In theory, the bookkeeper should have all the information they need to prepare and submit a VAT return, but in practice, not all bookkeepers offer this service.
Since 2022 it has been mandatory for VAT registered businesses to file their VAT returns in line with HMRC’s Making Tax Digital (MTD) scheme.
These new rules were first introduced in 2019 and require VAT registered businesses to file their VAT returns digitally from their accounting software or Excel spreadsheet directly into HMRC’s MTD for VAT platform. You (or your bookkeeper) can no longer copy and paste information from your accounting records into HMRC’s online VAT portal (which closed on 1 November 2022). The VAT data must be digitally linked to HMRC from your accounting records.
Many bookkeepers stopped offering a VAT return service due to the compliance issues associated with the new MTD scheme.
Again, the short answer is sometimes!
JRMA offers both accounting and bookkeeping services, and we will happily carry out the VAT duties.
As before, it is always best to ask your accountant or bookkeeper what services they DO provide and also what they DON’T provide.
There are several reasons why you should consider outsourcing these tasks.
Many business owners believe they are saving themselves lots of money by doing their own bookkeeping and/or VAT returns. In reality, unless they are a qualified or experienced bookkeeper, keeping their financial records up to date will take them much longer than a professional. This is time that could be better spent on running the business and dealing with customers.
In some instances, the business owner will do their own bookkeeping but outsource the VAT aspect. However, unless they can accurately process all the correct bookkeeping information into their accounts software or spreadsheet when they hand everything over to their accountant/bookkeeper to process the VAT, there are invariably errors that need sorting before the VAT return can be completed and filed.
The accountant or bookkeeper then needs to get involved in rectifying the situation. This can cost more than what it would have cost for them to do all the bookkeeping work from scratch.
By outsourcing your bookkeeping and VAT work, your accountant or bookkeeper will ensure that your books and records are constantly up to date. This means that your VAT is filed on time, and you will know how much you need to pay or reclaim. This is subject to you providing your agent with the necessary records well ahead of your VAT submission deadlines.
Since the introduction of MTD, HMRC has been clamping down on late VAT submissions. From 1 January 2023, they are implementing a points system whereby VAT registered businesses will receive points if they are late filing their returns or paying their VAT bills. In turn, these points will convert into fines which start from £200 and may also incur interest if they are not paid on time. So there is even more reason to ensure that you are on top of your bookkeeping and VAT duties.
JRMA have all bases covered. We can provide the full service (bookkeeping, VAT and accounts preparation) so you don’t need to worry about a thing. You just need to provide us with your income and expenditure records regularly and we keep everything up to date for you.
In doing so you will:
If this appeals to you, why not take the next step and get in touch? We work with businesses from Kidderminster to Worcester and beyond. We can discuss your business and the support you need and provide you with a quote. Simply contact us at 01905 796512 or email info@jrma.co.uk for a free, no-obligation discussion.
