Annual accounting: one VAT return a year
With annual accounting a business sends one VAT return a year and pays by instalments. Work out the instalments and the balance.
This path is practice in how the records and the sums work. It is not tax advice. Any rate or allowance in a question is an example for that question, so check GOV.UK for the current figures.
Most businesses send a VAT return every quarter: four a year. On the annual accounting scheme a business sends one return for the whole year.
It does not wait a year to pay. It pays instalments during the year, then settles up when the return is sent.
The VAT itself is worked out in the same way, and the records are kept all year. Only the timing of the returns and the payments changes.
The scheme is only open to a business with turnover below a limit set by HMRC. The current limit is on GOV.UK.