VAT returns and Making Tax Digital

When you have to register

Registration becomes compulsory once your VAT-taxable turnover passes the threshold in any rolling twelve-month period, not just your accounting year. That rolling test is what catches businesses out, so it is worth watching as you approach it rather than discovering it afterwards. You can also register voluntarily, which sometimes pays if your customers are VAT registered.

Choosing a scheme

• Standard accounting: reclaim VAT on purchases, account for it on sales
• Flat rate: a set percentage of turnover, simpler but not always cheaper
• Cash accounting: account for VAT when you are actually paid, which helps if customers are slow
• Annual accounting: one return a year with instalments, useful for steady businesses

Making Tax Digital

VAT-registered businesses must keep digital records and file returns through compatible software. We will get you set up, keep the records right through the quarter and file on time, so the deadlines stop being something you have to think about.

What we do

• Register you, or review whether you should be registered
• Review your scheme and change it if another suits you better
• Prepare and file each quarterly return
• Deal with HMRC queries and inspections