VAT Returns
VAT Returns
VAT compliance has become more complex with Making Tax Digital. We manage your VAT return preparation, submission, and any HMRC correspondence — so you never miss a deadline or get caught out.
Sound familiar?
You have missed a VAT deadline and are unsure what penalties are due
You are not set up for Making Tax Digital and do not know how to comply
You are approaching the £90,000 threshold and do not know what to do
You are not confident you are on the right VAT scheme
If any of these apply, you are in the right place. Get in touch and we will give you straight advice on what to do next.
About vat returns
VAT is one of the areas of UK tax where errors are most costly and most common. The obligations are ongoing, the deadlines are quarterly, and the consequences of mistakes range from penalties and interest through to HMRC compliance visits. For businesses approaching the £90,000 registration threshold, the decision of when to register — and how to adjust pricing, invoicing, and cash flow management as a result — is itself a significant one that benefits from proper advice. For those already registered, the priority is accuracy, compliance, and making sure the right VAT scheme is in place for the way the business actually operates.
Making Tax Digital for VAT has changed the compliance landscape substantially. All VAT-registered businesses are now required to maintain digital records and submit returns through HMRC-approved software. This is not simply a technical requirement — it changes the way bookkeeping needs to be structured throughout the quarter, the software that must be used, and the way transactions are recorded. Many smaller businesses that registered for VAT before MTD became mandatory are still operating with legacy systems that leave them exposed to compliance penalties that have nothing to do with the accuracy of their VAT calculation. Getting the right setup in place is something we handle as a standard part of our VAT service.
VAT scheme selection is an area where the right advice has a direct and measurable impact on cash flow and administrative burden. The standard rate scheme requires meticulous tracking of input and output VAT on every transaction. The flat rate scheme simplifies this by applying a fixed percentage to gross turnover — but the rules tightened significantly in 2017 with the introduction of the limited cost trader category, and businesses with a high labour-to-cost ratio need to assess carefully whether the scheme still offers an advantage. The cash accounting and annual accounting schemes each have advantages in specific circumstances. We review every client's position and make recommendations based on actual business numbers.
Our VAT service manages the complete quarterly cycle: preparation, review, approval, and submission via MTD-compliant software. Where a client has fallen behind on returns or carries outstanding VAT liabilities, we assess the position, advise on the most efficient resolution, and liaise with HMRC directly. If you are currently managing your own VAT and finding the quarterly deadline stressful, or if you have recently registered and are uncertain whether your process is correct, the free health check is the most efficient starting point.
What's included
Quarterly VAT return preparation
Making Tax Digital (MTD) compliant
VAT scheme advice (flat rate, standard, cash)
HMRC submissions handled
VAT registration and deregistration
What you get
Never miss a VAT deadline again
Correct VAT scheme for your business
No MTD software headaches
Clear reporting every quarter
How it works
VAT health check
We review your current VAT position, scheme, and compliance setup — and identify any issues before we begin.
MTD setup if needed
If you are not yet compliant with Making Tax Digital, we get the right software connected to HMRC.
Quarterly preparation
Each quarter we pull together your figures, check for errors, and prepare your return for your approval.
Submission and confirmation
We submit your return directly to HMRC and confirm acceptance. No missed deadlines.
This service is for: VAT-registered businesses, Limited companies, Sole traders approaching the VAT threshold.
Get started with a free health check
Not sure where to start? Book a free 30-minute conversation and we will give you clear, honest advice — no obligation.
Call us directly
01226 691932
Where our clients are based
Why choose us
Frequently asked questions
Common questions about vat returns — answered directly.
You must register for VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period, or when you expect to exceed this threshold within the next 30 days. Registration must be completed within 30 days of meeting the threshold — late registration carries its own penalties. You can also register voluntarily below the threshold, which allows you to reclaim VAT on purchases and may enhance your credibility with VAT-registered clients. We advise on the right approach for your specific situation.
Making Tax Digital requires all VAT-registered businesses to maintain digital records of their transactions and submit VAT returns using HMRC-approved software. All VAT-registered businesses are now in scope — there are no exemptions based on turnover. Non-compliance with digital record-keeping requirements attracts penalties separate from any late submission penalties. We ensure every VAT client is MTD compliant, both in their software setup and their record-keeping practices.
HMRC now operates a points-based penalty system for VAT. Each missed submission earns a penalty point. Once you reach the relevant threshold (four points for quarterly filers), a £200 financial penalty is charged for each subsequent missed submission. Late payment of VAT also attracts interest and potential penalty charges. If you have already missed deadlines, the most important thing is to file and pay as soon as possible — every day of delay increases the total cost.
The flat rate scheme simplifies VAT administration by applying a fixed percentage to gross turnover rather than calculating input and output VAT on every transaction. The percentage varies by trade sector. For some businesses — particularly those with relatively low costs and high margins — it can reduce the net VAT paid. However, businesses that qualify as limited cost traders (spending very little on goods) are subject to a 16.5% rate that largely removes the advantage. We assess whether the flat rate scheme is beneficial for each client before recommending it.
Yes. We arrange agent authorisation with HMRC, which gives us access to your VAT record. We then contact your previous adviser for any relevant information needed for the handover. The transition is straightforward and we manage the administrative steps. The next quarterly deadline becomes our first responsibility from the point we are in place.
Get started
Ready to get your vat returns sorted?
Book a free 30-minute health check. No obligation, no sales pitch — just clear, honest advice.