SoS (610) VAT Returns

SCHEDULE OF SERVICES (610) VAT RETURNS

This schedule should be read alongside your letter of engagement (LoE) and the (300) Standard Terms & Conditions.

Recurring Compliance Work

We will prepare your VAT returns (quarterly or annual, as agreed) on the basis of the information and explanations you provide to us. The first return to be prepared by us will be agreed before we commence work.

Based on the information you provide, we will tell you how much to pay and when. Where appropriate, we will initiate repayment claims if VAT has been overpaid.

Where appropriate, we will include import VAT from postponed VAT accounting digital certificates and/or C79s you provide to us.

Where appropriate, we will calculate the partial exemption annual adjustment.

Where appropriate, we will calculate the annual Capital Goods Scheme adjustment.

We will send you the completed return calculations for you to review and approve before submission to HMRC. It is important that you provide your approval at least 5 working days before the submission deadline. We will submit your return to HMRC only after receiving your approval.

Where you may be eligible for a digital record-keeping relaxation under the MTD for VAT rules, we will seek to reach agreement with HMRC on your behalf. This may be subject to an additional fee.

Where a query requires work or time spent outside the scope of your recurring compliance, we will let you know and agree a fee with you before proceeding where practicable. Where prior agreement is not practicable, we reserve the right to charge for the work or time involved and will notify you as soon as reasonably possible.

Ad hoc queries by, for example, telephone or email are not part of routine compliance and may result in additional fees. Where possible, we will discuss and agree any additional fees in advance, but this is not always practicable and we reserve the right to charge for such work.

Ad Hoc and Advisory Work

Where you ask us to, we will also provide such other VAT and advisory services as we agree from time to time. These services are subject to the terms of your LoE and the (300) Standard Terms & Conditions, unless we issue a separate letter of engagement. An additional fee may apply.

Examples of this work include:

Advising on ad hoc VAT transactions and queries.
Reviewing and advising on a suitable partial exemption method.
Dealing with HMRC VAT enquiries and correspondence.
Advising on the use of VAT accounting schemes (cash accounting, annual accounting, flat rate scheme, and similar).
Advising on EU VAT obligations, including the VAT One Stop Shop (OSS) and Import One Stop Shop (IOSS) schemes, where you supply goods or services to EU consumers.
Advising on time to pay arrangements or deferral of VAT payments.
Reviewing your record-keeping processes and advising on improvements to meet the digital links requirements of MTD for VAT.
Work required to resolve compatibility issues between your software and ours.

Where specialist advice is required, we may need to seek this from, or refer you to, appropriate specialists. We will only do so when you ask us to.

Your Responsibilities

You are legally responsible for:

ensuring your VAT returns are correct, complete, and submitted in the appropriate digital format
ensuring your record-keeping system meets the requirements for the digital recording and transfer of data under MTD for VAT
filing returns by the due date
paying VAT on time.

Failure to meet these obligations may result in penalty points, financial penalties, and/or interest. You cannot delegate this legal responsibility to us. You agree to check that returns we have prepared for you are complete and accurate before you approve them.

To enable us to carry out our work, you agree:

to make all returns on the basis of full disclosure
to provide all information necessary for dealing with your VAT affairs — we will rely on the information you give us being true, correct, and complete and will not audit it
to authorise us to approach such third parties as may be appropriate for information we consider necessary
to provide us with all records relevant to the preparation of your return as soon as possible after the return period ends. We need a minimum of 10 working days before the submission deadline to complete our work. If records are provided late, are incomplete, or are unclear, we accept no responsibility for any penalties that may arise. Where we agree to work to a shorter timescale, an additional fee may apply
to have paid our fee in full before we submit your return to HMRC. Where work is complete but our fee remains unpaid, we reserve the right to withhold submission.

You will keep us informed of material changes in your circumstances that could affect your VAT obligations. Examples include:

a change in the nature of your business
a change in the type of supply you make for VAT purposes
a change in your type of business entity
the acquisition or disposal of land or property
starting to make supplies that are exempt from VAT
if VAT was reclaimed in the last 10 years on expenditure of over £250,000 on purchasing, building, or redeveloping a property, and the extent to which it is used for taxable or exempt purposes has since changed (Capital Goods Scheme adjustments may apply).

If you are unsure whether a change is material, please let us know.

Where you want us to deal with HMRC communications, please forward all correspondence to us promptly — including statements of account, notices of assessment, and letters. HMRC is not obliged to copy all communications to your agent, so it is essential that you pass these to us in time for us to act within any statutory time limits.

You are responsible for bringing to our attention any errors, omissions, or inaccuracies in returns that you become aware of after submission, so that we may assist you to make a voluntary disclosure.

You are responsible for monitoring your own VAT position on an ongoing basis, including any changes that may affect your registration status or the basis of your returns.

If any other business you are involved with is not registered for VAT, you are responsible for monitoring its turnover to establish whether it is liable to register. If turnover exceeds the VAT registration threshold and you wish us to assist in notifying HMRC, we will be pleased to help. You should notify us in good time to enable a VAT registration form to be submitted within one month following the month in which the threshold was exceeded. We will not be responsible for any late-registration penalty if you fail to notify us in time.

As part of our normal procedures, we may ask you to provide written confirmation of any oral information and explanations given to us during the course of our work.

Limitation of Liability

Our services are subject to the limitations on our liability set out in your letter of engagement (LoE) and in the (300) Standard Terms & Conditions. These are important provisions and you should read them carefully.