VAT returns and registration, done for you
We tell you when you need to register for VAT, help you pick the scheme that suits your business, and file every return on time through Making Tax Digital. You send your invoices and receipts from your phone, and we go through each return with you before it is filed.
ACCA qualified accountants with over 20 years in practice
When you must register
The VAT threshold is £90,000 of taxable turnover. There are two tests, and either one can catch you.
Looking back: the last 12 months
If your taxable turnover for the last 12 months goes over £90,000, you must register within 30 days of the end of the month you went over. We keep a running total each month as part of your bookkeeping, so it does not creep up unnoticed.
Looking ahead: the next 30 days
If you expect your taxable turnover to go over £90,000 in the next 30 days alone, for example because a big contract is about to be paid, you must register by the end of those 30 days.
Registering by choice
You can register even when your turnover is under £90,000. It can make sense if most of your customers are VAT registered businesses, but it adds returns and records, so we work through the numbers with you first.
VAT schemes in plain words
Most small businesses use the standard way. Two schemes can make VAT simpler or easier on cash flow.
| Scheme | How it works | Who can use it |
|---|---|---|
| Standard | You charge VAT on sales and reclaim VAT on what the business buys, based on invoice dates. | Every VAT registered business, unless it joins a scheme. |
| Flat Rate Scheme | You pay HMRC a fixed percentage of your VAT inclusive turnover and keep the difference, but cannot reclaim VAT on most purchases. | Turnover of £150,000 or less, not counting VAT, to join. |
| Cash accounting | You pay VAT on sales when the customer pays you, and reclaim VAT on purchases when you have paid for them. | Taxable turnover of £1.35 million or less. |
Flat rates for building work
Under the Flat Rate Scheme, labour only building work uses 14.5%, where materials are under 10% of turnover, and general building work uses 9.5%. A limited cost business, one that spends very little on goods, pays 16.5%. Everyone gets 1% off in their first year of VAT registration.
Building work for another VAT registered business in CIS usually falls under the VAT reverse charge instead, and those sales are left out of the Flat Rate Scheme. So we compare the options using your own invoices before you choose.
Making Tax Digital for VAT
Every VAT registered business is now in Making Tax Digital for VAT. That means keeping VAT records digitally and sending returns through compatible software. We set up and use the software you already have, or help you choose one.
Each return, and the payment, is usually due one calendar month and 7 days after the end of the VAT period. So for a quarter ending 30/6, both are due by 7/8.
How each VAT return works with us
Records through the quarter
Send invoices and receipts as you go, or let us keep your bookkeeping up to date.
We prepare and check
We check the VAT on each sale and cost and spot anything that looks wrong.
You approve, we file
We go through the figures with you on a call, then file and tell you what to pay.
Related services
The tax rules on this page come from GOV.UK and HMRC guidance. Last checked .
Questions about VAT
What is the VAT threshold?
£90,000 of taxable turnover over the last 12 months, or in the next 30 days alone.
When is my VAT return due?
Usually one calendar month and 7 days after the end of the VAT period, and the payment is due by the same date.
Should I register for VAT voluntarily?
It depends on who your customers are. If most of them are VAT registered businesses, registering can help. If they are mainly homeowners or the public, it can push your prices up. We look at your own figures before you decide.
Can you help a restaurant or takeaway with VAT?
Yes. Hot food, cold food and drinks are treated differently, and we cover that on our page for restaurants and takeaways.
I have missed VAT returns. What should I do?
Get in touch soon. We file what is outstanding, work out what is owed and help you deal with any penalties.
Hand your VAT to us
Tell us about your business and turnover and we will send you a quote. Or book a free call to ask questions first.