If your business turnover exceeds the VAT registration limit (currently £82,000) at any point in a calendar year, then you should register for VAT.
The VAT return also includes details of your total purchases (net VAT) and input tax - the VAT you have paid and can reclaim. If you make sales that are exempt from VAT, you will not be able to reclaim any of the VAT you have paid on purchases. Other purchases you cannot usually reclaim VAT include most motor purchases. You can't reclaim VAT unless you have a VAT invoice to prove you paid it.
The VAT return summarises your sales and purchases and the VAT relating to them. All the information you need should be in your VAT records.
The VAT return includes your sales total (net VAT) and output tax - the VAT you charged on sales and which needs to be paid to HMRC. This also includes VAT due on any other taxable transactions, such as if you barter goods or take them for personal use.
Then please do not hesitate to contact us on 020 8941 2187 or firstname.lastname@example.org.
This includes Standard and Flat Rate Returns.