Register for Annual Accounting Scheme

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The UK annual accounting scheme is an unpopular option for businesses since it is based mainly on estimations. Instead of reporting and paying VAT 4 times a year, once for each quarter
With the Annual Accounting Scheme you:

  • Make advance VAT payments towards your VAT bill – based on your last return (or estimated if you’re new to VAT)
  • Submit 1 VAT Return a year

When you submit your VAT Return you either:

  • make a final payment – the difference between your advance payments and actual VAT bill
  • apply for a refund – if you’ve overpaid your VAT bill

The scheme would not suit your business if you regularly reclaim VAT because you’ll only be able to get 1 refund a year (when you submit the VAT Return).

You can join the scheme if your estimated VAT taxable turnover is £1.35 million or less.