At regular intervals usually quarterly VAT registered persons must submit a VAT return to HMRC,showing input tax and output tax for the period covered by the return. Any excess of output tax over the input tax is payable to HMRC. Any excess of input tax over output tax is repayable by HMRC.
The taxpayer’s income tax liability for the tax year in relation to all sources of income is aggregated as a total income. This tax liability is increased by the amount of any Class 4 National Insurance contributions which are due for the year.
When HMRC wish to contact you, they will not normally call on to your business premises without a prior appointment. Some people are under the allusion that HMRC will turn up unannounced, this is certainly not normal procedure for Her Majesty’s Revenue and Customs.