Usually, VAT-registered businesses submit their VAT Returns and payments to HM Revenue and Customs 4 times a year.
With the Annual Accounting Scheme you:
make advance VAT payments towards your VAT bill - based on your last return (or estimated if you are new to VAT)
submit 1 VAT Return a year
From 1 April 2019, most businesses will need to keep digital VAT records and use software to submit VAT Returns.
When you submit your VAT Return you either:
make a final payment - the difference between your advance payments and actual VAT bill
apply for a refund - if you have overpaid your VAT bill
The scheme would not suit your business if you regularly reclaim VAT because you will only be able to get 1 refund a year (when you submit the VAT Return).
You can join the scheme if your estimated VAT taxable turnover is £1.35 million or less.
Talk to an accountant or tax adviser if you want advice on whether the Annual Accounting Scheme is right for you.
Further information on the VAT annual accounting scheme can be found on GOV.UK's website.