The annual accounting scheme is designed to help small businesses by allowing them to submit only one VAT return a year. This is instead of the normal four returns. The scheme aim is to help with budgeting, cash flow and reduce the paperwork. If you are starting or have started a business in Lewisham, Bromley, Kent and London areas we, at Adiva Accountants in Lewisham, can advise you on the annual accounting scheme.
Over the years, HMRC have introduced a number of VAT schemes designed to reduce the administrative burden on small businesses. One of these schemes is the annual accounting scheme. During the year, the business pays instalments based on an estimated liability for the year with a balancing payment due with the return.