If you’re a blogger, freelancer, or business owner in the UK, you might have seen a sudden spike in your vat payments. The government of the UK announced in October 2017 that they would be requiring online businesses to collect and pay VAT for their EU activity. This means virtual companies like bloggers and freelancers will need to set up online accounts to submit their tax returns to HMRC. But fear not – this article will provide insight into what’s involved and how it can help you!
What is VAT?
VAT, or Value Added Tax, is a tax that is charged on the value of goods and services sold in the UK. It is an important part of the UK tax system, as it helps to fund public services. In order to ensure that businesses pay the correct amount of VAT, it is important to know how it works.
When you buy goods or services from a business in the UK, you are likely to have to pay VAT on those purchases. The VAT is added to the price of the goods or services, and you then have to pay that amount to the government. VAT is not included in the price that you see when you are buying products from supermarkets or other retail outlets.
There are different types of VAT that businesses can charge their customers. These types of VAT include: standard rate VAT (SVAT), which is charged at 20% on most goods and services; basic rate VAT (BRV), which is charged at 17% on most goods and services; and extra rate VAT (ERV), which is charged at 25% on many items.
In order to make sure that you are paying the correct amount of VAT, it is important to use an online tax service. This service
Why Paying VAT Online in the UK is a Must
When it comes to paying tax, online is always the best way to go. Not only is it quick and easy, but you can also avoid the hassle and potential delays that can occur at the tax office. Here are just a few reasons why you should pay VAT online and why it’s a priority this tax season:
- You can get your tax sorted in a fraction of the time – Compared to traditional methods of paying taxes such as filing your returns or going to the tax office, online taxation is simple and fast. This means that you can get your taxes settled much faster, which will save you time and money in the long run.
- You can take advantage of modern technology – Today’s e-payment platforms allow for seamless transactions between taxpayers and the tax authorities. As such, you can rely on them to handle all aspects of your VAT return – from submitting your return electronically to receiving any refunds that may be due to you.
- You can keep track of your progress – Online taxation systems usually provide users with detailed reports on their progress through the process, so that they know exactly where they stand at all times. This makes it much easier to stay on
Summary of a Basic Tax Return
Tax season is here, and that means it’s time to file your taxes. One of the most important things you need to do is pay the VAT (value-added tax) on all your purchases.
If you’re a resident of the United Kingdom, paying the VAT online is the easiest and most efficient way to do it. You can file your taxes using the Tax Free Online Services website, and you won’t have to worry about any forms or paperwork.
The website will take care of all the filing for you, and it will even provide you with a summary of your tax return. This summary will let you know how much tax you owe, as well as what deductions and credits you may be entitled to.
So if you’re ready to file your taxes this year, make sure to go online and pay the VAT using the Tax Free Online Services website. It’ll save you a lot of time and hassle.
Deferring Your Tax
Do you know what your tax liabilities are? If not, now is the time to start planning your personal finances and deferring your tax liabilities.
As a UK taxpayer, you may be eligible to defer paying some or all of your tax liabilities until after the tax year has ended. By doing this, you can minimise the amount of money that you have to pay in arrears and potentially reduce the amount of tax that you have to pay overall.
As well as being able to defer paying your taxes, there are other benefits to doing so – for example, this can help reduce your taxable income and therefore increase the amount of money that you can save each year. So why not consider deferring your tax this year? Here are five reasons why it’s a good idea.
- Taxation is unavoidable – but it doesn’t have to be expensive. Deferring your taxes can help keep costs down, particularly if you’re in the middle of a financial crunch.
- You’ll get a refund sooner – if you make a mistake with your tax return, claiming a refund can take several months or you can claim it faster when you pay online.
Conclusion
If you are an online business in the UK, it is important to know about the different tax structures that are available to you. One of these structures is paying VAT online, and as such, it is a good idea to get started as soon as possible. By doing this, you can avoid any delays or problems with your paperwork and ensure that you are fully compliant with all applicable tax laws.
