VAT compliance can be complicated — especially with Making Tax Digital requirements now in force. We handle VAT registration, quarterly returns, and full MTD compliance so you stay on the right side of HMRC without the stress.
We set up your MTD-compatible software, connect it to your bank, and handle every quarterly submission. You just need to keep your records in order.
Get in Touch| Item | Detail |
|---|---|
| Registration threshold | £90,000 of taxable turnover in any rolling 12 months, or expected in the next 30 days alone |
| Deregistration threshold | £88,000 |
| Notify HMRC | Within 30 days of the end of the month you passed the threshold |
| Standard accounting | Charge VAT, reclaim VAT on costs, pay or reclaim the difference |
| Flat Rate Scheme | Pay a fixed percentage of gross turnover, available up to £150,000 of turnover |
| Cash accounting | Account for VAT when money is received or paid, available up to £1.35 million |
| Annual accounting | One return a year with interim payments |
The Flat Rate Scheme can save time but rarely saves money for businesses with significant costs, and a limited cost trader must use 16.5%. Which scheme suits you depends on your margins and how much VAT you reclaim, so we run the numbers before you choose.
Every VAT-registered business must keep digital records and file through compatible software. A late return earns a penalty point, and a financial penalty follows once the points threshold is reached, so filing on time matters even when there is no VAT to pay.
If you sell online, see VAT across Amazon and Shopify, and for the registration rules see our VAT registration guide.
Sources: GOV.UK: register for VAT, GOV.UK: VAT schemes.
You must register when your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily below this threshold, which is beneficial if you sell mainly to VAT-registered businesses.
MTD for VAT requires VAT-registered businesses to keep digital records and submit returns via approved software. It has been mandatory for all VAT-registered businesses since April 2022.
£90,000 of taxable turnover in any rolling 12 months. You must register within 30 days of the end of the month you exceed it, or if you expect to exceed it in a single 30-day period.
It depends on your costs and margins. Standard accounting suits businesses with lots of VAT to reclaim, while the Flat Rate Scheme suits some low-cost service businesses. We compare the schemes on your actual figures before you choose.