VAT returns and compliance

Registration, quarterly returns and Making Tax Digital‑ready records handled for you.

VAT returns and compliance

Get help with VAT registration, digital record-keeping and accurate quarterly returns so you stay compliant with HMRC without losing evenings to spreadsheets.

VAT Services

Overview

Value Added Tax (VAT) is a notoriously tricky part of running a business. In the UK, businesses with taxable turnover above £85,000 must register for VAT[3], but even below that threshold many choose to register to reclaim VAT on purchases.

Our VAT services are here to simplify everything about VAT for you. We help with VAT registration, preparing VAT returns, and submitting them to HMRC on time. Navigating VAT rules can be time-consuming – rates can change, certain items may be zero-rated or exempt, and there are different VAT schemes (standard, flat rate, etc.). We stay on top of all these details so you don’t have to.

Whether you’re new to VAT or have been doing it for years, we ensure your VAT returns are accurate, compliant with the latest regulations, and submitted ahead of deadlines. No more last-minute panics or worrying about penalties – we make VAT as hassle-free as possible.

Benefits

  • Expert VAT Knowledge:
    Our team has deep knowledge of UK VAT rules and regulations. We advise you on the best way to handle VAT for your business – for example, whether the Flat Rate Scheme is beneficial or if you qualify for any VAT reliefs. When regulations change (which they often do), we’ll inform you and adjust your VAT processes accordingly. This expertise ensures you charge the right amount of VAT and claim back everything you’re entitled to.

  • Time-Saving Compliance:
    Handling VAT internally can eat up a lot of time with paperwork and spreadsheets. We take over that burden. From keeping digital records of your VAT transactions to preparing the return, we handle the heavy lifting. You won’t need to pore over guidance notes or call HMRC for clarifications – we’ve got it covered. This frees you to focus on your business operations instead of tax admin.

  • Tailored to Your Business:
    VAT isn’t one-size-fits-all. A local retail shop, a contractor, and an e-commerce company all face different VAT challenges. We tailor our service to meet your needs. For instance, if you’re an online seller dealing with overseas VAT or an SME on a cash accounting scheme, we adjust our approach accordingly. No matter your industry or transaction volume, we provide the right level of support – from basic quarterly filings to complex multi-country VAT affairs.

  • Avoid Costly Mistakes:
    VAT errors can be expensive. A simple mistake in your VAT return could mean overpaying (hurting your cash flow) or underpaying (risking penalties). We have checks in place to prevent errors – we reconcile your VAT figures with your accounts and double-check any unusual transactions. We also make sure to file on time for each period. With our meticulous attention to detail, you stay clear of HMRC fines and enjoy confidence that your VAT is handled correctly.

  • Representation & Support:
    Should HMRC ever ask questions about your VAT return or select your business for a compliance check, we’ll be right there to support you. We can act as your agent, liaise with HMRC on your behalf, and provide them with any information needed (with your authorization). Having professionals in your corner can make these situations far less daunting. We aim to minimize any disruption to your business.

Process

  1. VAT Registration Advice:
    If you haven’t registered for VAT yet but need to (or it might be beneficial voluntarily), we guide you through the process. We’ll check if your turnover is approaching the threshold and handle the VAT registration application for you, ensuring you get a VAT number in time.

    We also explain the pros and cons of voluntary registration if you’re below the threshold – for example, the ability to reclaim VAT on expenses versus the requirement to charge VAT to your customers.

  2. Record Keeping (Making Tax Digital Ready):
    We ensure you have a proper system to keep track of VAT on all sales and purchases. Under HMRC’s Making Tax Digital (MTD) rules, VAT-registered businesses must keep digital records and file returns using compatible software[2].

    We’ll set you up with an MTD-compliant software (if you don’t already use one) or work with your existing digital records. We’ll regularly gather your invoices, receipts, and expense records – many clients simply provide us access to their accounting software or send us the data in a format that works for them.

  3. VAT Calculation:
    At the end of each VAT period (usually every quarter), we get to work on your VAT return. We compile all the sales (output VAT) and purchases (input VAT) information for that period. Then we calculate the VAT you owe or the refund due to you.

    This includes applying any specific rules relevant to you – for instance, accounting for reverse charge on certain services, handling import VAT correctly if you import goods, or adjusting for fuel scale charges if applicable. We also take into account any VAT scheme nuances (e.g., Flat Rate percentage, if you use that scheme, or retail scheme calculations for shopkeepers).

  4. Review & Approval:
    Accuracy is critical in VAT. Before submission, we review the draft VAT return figures and can send you a summary. We explain the key numbers: total sales, total VAT on sales, total VAT on purchases reclaimed, and the net VAT payable or reclaimable.

    If anything looks unexpected, we investigate (maybe a large purchase invoice you forgot to tell us about, or a customer credit note, etc.). Once you’re comfortable, you approve the return for filing.

  5. Submission to HMRC:
    We file your VAT return electronically to HMRC well before the deadline. Typically, VAT returns are due one month and 7 days after the end of the period – we make sure yours is submitted ahead of time.

    Our software sends the return directly to HMRC through the MTD system, so it’s seamless and you get confirmation of receipt. We’ll remind you of the payment due (if you owe VAT) and the deadline to pay, or conversely, we’ll inform you of the refund process if HMRC owes you money.

  6. Ongoing Compliance & Support:
    After each return, we’ll provide any feedback or advice, such as “your VAT bill is a bit higher this quarter, perhaps due to increased sales” or “you might benefit from the Flat Rate Scheme, shall we evaluate it?”.

    We keep an eye on changes in VAT law – for example, if HMRC changes the VAT rate in your industry or new rules like domestic reverse charge for construction, we adapt your VAT handling accordingly. If at any point you have questions (like “Can I claim VAT on this expense?”), we’re just a phone call or email away to give you a clear answer.

FAQs

When do I need to register for VAT?

A: You must register for VAT if your taxable turnover for the last 12 months exceeds £85,000 (the current threshold) or if you expect it to exceed that in the next 30 days[3]. This threshold can change over time, but it has been £85,000 for several years.

Even if you haven’t hit the threshold, you can choose to register voluntarily. Voluntary registration might be beneficial if you have significant expenses (so you can reclaim VAT) or if you want to appear more established to clients.

We can analyze your situation and advise you on the right time to register. If registration is needed, we’ll handle the paperwork and get your VAT number from HMRC.

How often do I need to file VAT returns?

A: Most businesses file VAT returns quarterly (every 3 months), which means four times a year. Each return covers a quarter’s worth of sales and purchases. The deadlines are usually one month and 7 days after the quarter ends.

For example, a January–March VAT quarter would have a filing and payment deadline of May 7th. Some businesses choose or are required to file monthly (if they regularly reclaim VAT, for cashflow reasons) or annually (Annual Accounting Scheme).

We’ll let you know what cycle you’re on and ensure every return is filed on time. We also make sure you know how much to pay HMRC (or reclaim) by the due date so you stay compliant and avoid late fees.

What information do you need from me to prepare a VAT return?

A: If we’re also doing your bookkeeping, likely very little – we’ll already have your sales and purchase data. Otherwise, we would need your records for the period, which include total sales amounts (and VAT charged on those sales) and total purchases (and VAT you paid on business expenses).

Typically this comes from invoices, receipts, and your accounting software or spreadsheets. We might ask for bank statements as well to ensure we haven’t missed anything.

Don’t worry, we’ll give you a checklist at the start so you know exactly what to provide. Some clients give us access to their accounting system so we can extract the info directly. However it works best for you, we’ll accommodate it.

Can you help if HMRC asks questions or decides to audit my VAT returns?

A: Yes, absolutely. If HMRC has any queries about a return (perhaps they send a letter asking for backup documentation for a VAT refund claim, or they schedule a compliance visit), we’ll assist you through the whole process.

We can communicate with the HMRC officer on your behalf (with your permission) and provide any records or explanations they need. Because we maintain thorough records and documentation for your VAT, we’ll have the evidence ready to support every number on your return.

Our goal is to resolve any HMRC inquiry efficiently and accurately, giving them confidence that your VAT is correct. Knowing you have professionals to back you up can greatly reduce the stress of a VAT audit.

What if I have business activities that are exempt or outside the scope of VAT?

A: We will handle those appropriately. Not all sales attract VAT – for instance, some services (like certain financial or education services) can be exempt, and things like grants or donations might be outside the scope of VAT.

During onboarding, we’ll discuss what your income streams are. If you do have exempt sales, we’ll ensure to apply partial exemption method if needed (since you can only reclaim input VAT related to taxable activities). If you have overseas transactions, we’ll handle those under the right place-of-supply rules.

In short, we tailor the VAT calculations to your specific business activities, making sure that things that shouldn’t have VAT are treated correctly. This way, your VAT returns are accurate and you’re not paying more VAT than necessary.