Is your business submitting quarterly returns? Has your trading model has changed? Will your future sales be zero-rated? Maybe it is time to think about submitting monthly returns to HMRC!
But remember:
Should you make the switch?
If your business has a high percentage of zero-rated sales but is not claiming significant input tax (i.e you are a labour only service business that isn’t buying a lot of goods), then the cash-flow benefits of changing to monthly returns isn’t worth it.
If your business uses the cash accounting scheme (CAS), it would be worth leaving the scheme so you can claim your input tax quicker if you suddenly have more zero-rated sales. It would be particularly worthwhile if you get extended credit terms from your suppliers! If you choose to leave the CAS you don’t need to tell HMRC but you must account for output tax on the return.
How to make the switch
You can ask HMRC to submit returns for special tax periods, for example your management accounts period might run to the 5th day of every month, and you want your return submission to line up with this.
Still need a bit of extra help? Contact Rustrick Accountants today or pop into the office!