Contrary to what many people might think, there are still significant numbers of people setting up new business ventures. For example, in the week ending March 30th, CRO statistics show that 335 Limited Companies were formed and 254 Business Names were registered. Whilst this is much less than was the case in, say 2007, it nonetheless indicates that there are many people out there who are either making the leap to self-employment or that there are self-employed people setting up new ventures.
All VAT Registered persons, whether they are Sole traders, Partnerships or Limited Companies and who are required to submit a VAT Return for the period 1st January 2011 to February 28th 2011 (VAT 3 Form) have until March 19th to submit this return.
This VAT Return details the VAT charged on their Sales (Output VAT) and the VAT paid on their Purchases (Input VAT). They are also required to disclose the amount of Sales of Goods to other EU countries, together with Purchases from Other EU countries.
By subtracting the Input VAT from the Input VAT, the amount of VAT to be paid/ refunded is calculated. This payment must be made by March 19th. In the event of a repayment, there is an option to have the amount refunded to your bank account or to have it offset against other Tax Liabilities, e.g. Employers Returns (P30).
Depending on a taxpayers circumstances this is often a good idea as by leaving money ‘on account’, it will reduce future liabilities. For example, if you are an Employer and you often struggle to make your P30 payment it may be a good idea to request the Revenue Commissioners allocate a VAT refund to your future PREM liability.
If you have any queries, please don’t hesitate to contact the office and we will be happy to advise you. All our staff are fully qualified accountants as we don’t employ trainees. This ensures that the quality of our advice is second to none.