Cheapest way to submit VAT

[Paul FilmMaker]

The only reason for me to buy an accounting package is VAT registration. So what's the cheapest one?

I don't know all the packages (obviously I know Xero, Sage and that's about it) but is there something else I can use to submit VAT? I really don't need anything complex, just something cheap and cheerful just for this element.

Is there an option?

 

[ChrisCallaghan]

The only reason for me to buy an accounting package is VAT registration. So what's the cheapest one?

I don't know all the packages (obviously I know Xero, Sage and that's about it) but is there something else I can use to submit VAT? I really don't need anything complex, just something cheap and cheerful just for this element.

Is there an option?

Who does your business bank with? Many now provide deals on accounting software as part of having a business account.

If they don't, you could consider switching. This is not an endorsement or recommendation, but I understand Monzo are giving 6 months of Xero for free for new customers.

 

[Paul FilmMaker]

Who does your business bank with? Many now provide deals on accounting software as part of having a business account.

If they don't, you could consider switching. This is not an endorsement or recommendation, but I understand Monzo are giving 6 months of Xero for free for new customers.

Thanks, that's interesting. Will ask my bank!

 

[Ozzy]

Another to consider, NatWest are giving FreeAgent away for free to business customers. Barclays gives another (can't recall name), and many of the smaller new digital providers all have their own solutions for it.

 

[ChrisCallaghan]

Another to consider, NatWest are giving FreeAgent away for free to business customers. Barclays gives another (can't recall name), and many of the smaller new digital providers all have their own solutions for it.

Thanks @Ozzy , I knew one of the banks was giving away FreeAgent but couldn't remember who!

 

[Paul Kelly ICHYB]

How are you currently creating your accounts/VAT liability?

For one of my simple businesses, I create numbers on a spreadsheet and then use 100pv VAT Free Bridge to move the numbers over to HMRC - simple and cheap (i.e. free)!

 

[MyAccountantOnline]

The only reason for me to buy an accounting package is VAT registration. So what's the cheapest one?

I don't know all the packages (obviously I know Xero, Sage and that's about it) but is there something else I can use to submit VAT? I really don't need anything complex, just something cheap and cheerful just for this element.

Is there an option?

If you bank with NatWest, Mettle, RBS or Ulster Bank FreeAgent is free. It works well for a lot of small businesses. Here's a link - https://www.freeagent.com/pricing/free-accounting-software/

Do also ask your accountant if they work with any particular software, some do and can pass on discounts.

What sort of business do you run and do you have any specific requirements apart from the ability to deal with VAT?

 

[Paul FilmMaker]

How are you currently creating your accounts/VAT liability?

For one of my simple businesses, I create numbers on a spreadsheet and then use 100pv VAT Free Bridge to move the numbers over to HMRC - simple and cheap (i.e. free)!

Wow, I love this! Thanks!

 

[Paul FilmMaker]

If you bank with NatWest, Mettle, RBS or Ulster Bank FreeAgent is free. It works well for a lot of small businesses. Here's a link - https://www.freeagent.com/pricing/free-accounting-software/

Do also ask your accountant if they work with any particular software, some do and can pass on discounts.

What sort of business do you run and do you have any specific requirements apart from the ability to deal with VAT?

Video Production. It's B2B vids to help customers sell more. So it's very, very simple from an accounting perspective.

The issue is pre-VAT, I built my own tool with a bit of VB which does all the calculations for us.

It depends on us shopping at the same place. I.e. we're a Canon house meaning all our cameras, equipment, batteries, lenses, servicing etc... are Canon and we buy from the same provider. So the s/sheet recognises the word 'Canon' or the name of the provider, assigns it correctly from an accounting perspective and just handles everything so we get an accurate number.

Coffee is Starbucks, Nero etc... and the same thing happens.

Sure, it needs a bit of tweaking, but it does 95% of what I need. So I just need to get the numbers into HMRC from this nicely calculated s/sheet.

 

[MyAccountantOnline]

Video Production. It's B2B vids to help customers sell more. So it's very, very simple from an accounting perspective.

The issue is pre-VAT, I built my own tool with a bit of VB which does all the calculations for us.

It depends on us shopping at the same place. I.e. we're a Canon house meaning all our cameras, equipment, batteries, lenses, servicing etc... are Canon and we buy from the same provider. So the s/sheet recognises the word 'Canon' or the name of the provider, assigns it correctly from an accounting perspective and just handles everything so we get an accurate number.

Coffee is Starbucks, Nero etc... and the same thing happens.

Sure, it needs a bit of tweaking, but it does 95% of what I need. So I just need to get the numbers into HMRC from this nicely calculated s/sheet.

If you are eligible for a free subscription to FreeAgent that will work well for you from what you've said and some of the features it has will probably save you quite a bit of time. The 'guess' feature in FreeAgent will allocate your payments and receipts when recording transactions in a similar (possibly better?) way to your spreadsheet. The invoicing is quick and easy too and enables you to track unpaid sales quickly and easily.

If you can't get a free subscription to FreeAgent and your accountant doesn't work with any specific software to pass on discounts etc Accounts Portal is another good system which deals well with VAT. It doesn't have so many features as FreeAgent but it's a lot cheaper than FreeAgent.

 

[MyAccountantOnline]

Video Production. It's B2B vids to help customers sell more. So it's very, very simple from an accounting perspective.

The issue is pre-VAT, I built my own tool with a bit of VB which does all the calculations for us.

It depends on us shopping at the same place. I.e. we're a Canon house meaning all our cameras, equipment, batteries, lenses, servicing etc... are Canon and we buy from the same provider. So the s/sheet recognises the word 'Canon' or the name of the provider, assigns it correctly from an accounting perspective and just handles everything so we get an accurate number.

Coffee is Starbucks, Nero etc... and the same thing happens.

Sure, it needs a bit of tweaking, but it does 95% of what I need. So I just need to get the numbers into HMRC from this nicely calculated s/sheet.

If you want to retain your existing spreadsheets you could look at bridging software which is what Paul mentioned above.

 

[DontAsk]

VT+ is cheaper than any cloud based solution I could find, for anything but the most basic, crippled, package.

 

[UK Contractor Accountant]

VT+ is cheaper than any cloud based solution I could find

QuickFile - £60+ VAT per year
Plus already set up for MTD (ITSA)

 

[Paul FilmMaker]

By the way, thanks to everyone for your replies! This has really helped and will research & pick a solution! Superb!

 

[MyAccountantOnline]

By the way, thanks to everyone for your replies! This has really helped and will research & pick a solution! Superb!

Let us know what you use and how you get on

 

[Paul FilmMaker]

So I'm going to try with Fresh Bridge as this is free from my bank. Paul's solution is good but my main computer's a Mac and I don't use Excel. Fingers crossed I don't mess it up...

 

[Clinton]

I understand Monzo are giving 6 months of Xero for free for new customers.

How awful!

Free for 6 months and then trapped forever paying a mind blowingly expensive subscription for the rest of your life?

(Mindblowingly expensive given the OP needs something just to file VAT - a one off purchase for maybe something like £10-£50).

All these subscriptions - instead of straight up one of purchases - are taking the p*ss.

... then use 100pv VAT Free Bridge to move the numbers over to HMRC - simple and cheap (i.e. free)!

Even better!

 

[TheoNe]

Absolute cheapest is use Google sheets for your accounts, calculate the VAT using a formula, double check with vatcalculators.co.uk and submit yourself.

 

[Paul Kelly ICHYB]

submit yourself.

How? Sort of the core of the topic!

 

[TheoNe]

How? Sort of the core of the topic!

3 ways

Get a paper return and fill it in, and send it back to HMRC
Phone HMRC and do the submission over the phone (0300 200 3700)
Use software, their list is here: tax.service.gov.uk/making-tax-digital-software

 

[TheoNe]

How? Sort of the core of the topic!

The paper form is called a VAT 100 form, can get it online if you don't have one.

 

[UK Contractor Accountant]

The paper form is called a VAT 100 form, can get it online if you don't have one.

HMRC do not allow paper VAT Return submissions unless there are exceptional circumstances- need permission to file via paper.

 

[UK Contractor Accountant]

VAT regulations (the VAT (Amendment) (No 2) Regulations 2014, SI 2014/1497) provide that where HMRC are satisfied that it is not reasonably practicable for a person to file online or by telephone for reasons of age, disability, remoteness of location or any other reason, they may be authorised to file on paper.

 

[Clinton]

Get a paper return and fill it in, and send it back to HMRC

That's a fun one. When HMRC went digital for VAT, I remember them trying to twist my arm to go digital with VAT returns on the business I had then.

I refused. For a while they sent me paper forms. Then they stopped and said that I had to go digital.

When I wasn't complying, they got heavy with me and quoted some new law / guidance that said, apparently, that I had to go digital.

I don't remember the details but I stood my grounds and didn't pay my VAT for maybe a year or so and told them that I'd pay if they sent paper forms.

Finally, they relented and resumed sending me paper forms. I did not give them any "exceptional circumstances".

I mean, I'm okay with technology and I could have done it online but I didn't like the way they were pushing me around at the time (before the above VAT regulations 2014 came into force) so decided to be an awkward bugg*r.

 

[GLAbusiness]

The cheapest way depends on how you value your own time. If you want to DIY then you can use spreadsheets, bridging software etc. But it takes more of your time than a simple button click in a decent accounting package.

you say the only reason for me to buy an accounting package is VAT registration.

If you are running a serious business and plan to grow it, then I would suggest a simple accounting package is a no brainer

 

[Paul FilmMaker]

The cheapest way depends on how you value your own time. If you want to DIY then you can use spreadsheets, bridging software etc. But it takes more of your time than a simple button click in a decent accounting package.

you say the only reason for me to buy an accounting package is VAT registration.

If you are running a serious business and plan to grow it, then I would suggest a simple accounting package is a no brainer

There are two elements here. Firstly, I worked in tech companies for 20+ years and built a system which calculates what I need. My business is UK video production so it's incredibly straightforward and easy to do. It's basically an accounting package tailored to my business, built up over the years.

I want to stay with our inhouse system that works really well, saves us time and is much easier to use because it's tailored to our business. The suggestions of bridging software and free software provided by my bank are all excellent because I can keep our existing system and just bridge it into HMRC.

Our second challenge is we have a seriously good pipe which will cause a cashflow pocket of pressure (as calculated by our inhouse system). Part of our strategy is cutting costs for 6 months while we get through an initial squeeze. We have other elements in place but this is part of the chosen strategy and will help.

 

[MyTonyAcc]

If you have less than 1,000 transactions per annum, Quickfile is free

upload your statements
tag your income and expenses
VAT return generated automatically based on the tagged transactions