Changing from quarterly to monthly vat returns......being a bit thick here - The Book-keepers Forum (UK)

rachel_mclean · Guru

Changing from quarterly to monthly vat returns......being a bit thick here

RobH · Expert

Hi Rachel, yes that means they are re-claiming vat. I'm not aware of any way you can get them on a monthly return basis but might be worth a call to HMRC. Another idea may be to get them to set up another bank account where they can transfer the vat monthly so the money is saved ready to pay out quarterly.

richard2013 · Veteran Member

Have a look at annual vat scheme if it is of interest to you

-- Edited by richard2013 on Wednesday 5th of November 2014 04:32:57 PM

Sharon Eyre · Senior Member

yes I have a client who has repayments every time and therefore is on monthly returns

If it is a payment they have to stick to quarterly or annual

111 Bookkeeping and Payroll · Senior Member

What would happen if you worked out your VAT monthly and paid it, then submit the usual quarterly VAT return when due?

Sharon Eyre · Senior Member

Knowing the hmrc it would totally confuse them !
I suppose it is an option though

Cheshire · Master Book-keeper

Hi John
I reckon that would just confuse them far too much. I had a client who filled in a vat retun online incorrectly and pressed send without checking what he had keyed. He only owed £97 but he phoned the same day to tell them what he had done, he then paid the tax, he then filled in a manual return form they sent him, then 6 months down the line he was sent another form saying they were going to refund his overpayment. Several forms later they still think he has overpaid. I would say only pay when you have to, to save all the extra hassle, but agree with Robs suggestion....save the funds in another account. That's what I encourage all my clients to do.

111 Bookkeeping and Payroll · Senior Member

Right, and there was me thinking I'd come up with the perfect solution smile

Guess it's stick it in a savings account til the VAT's due, I mean we can't have good old HMRC confused can we biggrin

VinceH · Expert

Don't forget that putting the money into a savings account until the VAT is actually due means the client is collecting any interest on the money, rather than HMRC - making the savings account the much preferable option.

Unless your client is likely to dip into that account whenever they see fit because, well, there's money in there and it could be put to 'good use'. :/