VAT Returns

VAT is one of the easiest taxes to get wrong. We handle VAT registration (you must register once taxable turnover exceeds the £90,000 threshold), choose the most beneficial scheme for you — standard, Flat Rate, Cash or Annual Accounting — and file accurate Making Tax Digital VAT returns every quarter.

We also make sure you reclaim every pound of VAT you are entitled to and don't reclaim what you aren't (client entertainment, for example, is blocked) — the errors that trigger HMRC penalties. If HMRC opens an enquiry, we deal with it for you.

VAT registration and the £90,000 threshold

You must register for VAT once your taxable turnover exceeds £90,000 in any rolling 12-month period, or if you expect to cross it within the next 30 days. Sometimes it pays to register voluntarily below the threshold — particularly if your customers are themselves VAT-registered and you incur recoverable input VAT. We assess your position and handle the registration. Our guide on whether you have to register for VAT explains the thresholds in detail.

Choosing the right VAT scheme

The scheme you use changes how much VAT you pay and how much admin you carry:

• Standard accounting — reclaim VAT on purchases against VAT charged on sales.
• Flat Rate Scheme — pay a fixed percentage of turnover; simpler, and sometimes cheaper for service businesses with few costs.
• Cash Accounting — only account for VAT once you are actually paid, which helps cash flow.
• Annual Accounting — one return a year with instalments, reducing admin.

We model each option against your numbers and put you on the most beneficial one.

Reclaiming the right VAT — and avoiding penalties

Under the points-based penalty regime, late or incorrect returns now carry escalating costs. We make sure your bookkeeping supports every claim, that you recover input VAT correctly, and that you don't reclaim blocked items — VAT on client entertainment being the classic trap. If HMRC raises a query or inspection, we manage it on your behalf.