Filing VAT shouldn’t interrupt the way you run your business. At Every Penny Accounts, we simplify every stage of the process, from gathering your figures to reviewing your VAT details, so your return is accurate and submitted on time. Whether you manage simple transactions, are self employed or run a limited company, our experienced accountants guide you through the rules and help you submit your VAT return online with confidence.
You also get full support using your chosen accounting software, making it easier to keep digital records and complete your online return without the usual stress. We ensure your figures align with your business activity and VAT registration number, helping you maintain clear, compliant records in line with UK requirements throughout each accounting period.
When you’re eligible to reclaim VAT on business purchases, it’s important to understand what you can claim and how to do it properly. Many businesses miss out on legitimate claims because of poor record keeping or uncertainty about the rules.
Here’s what you need to consider:
HM Revenue & Customs may ask for extra details or documentation to support a claim, making accurate bookkeeping essential. Records should clearly identify the VAT charged by suppliers and the services bought for the business. VAT documents and digital records generally need to be retained for at least six years.
Failing to keep accurate records or misunderstanding what can be reclaimed may result in delays, penalties or rejected claims. Our team can help you apply the rules correctly, make appropriate claims and maintain complete records.
Not every small business is required to register. However, registration normally becomes compulsory when VAT taxable turnover exceeds the current £90,000 threshold in a rolling 12-month period, or when you expect to exceed it within the next 30 days. HMRC then provides a unique VAT Registration Number. Once registered, you must file a return for each accounting period, even where there is nothing to pay or reclaim.
For many business owners, voluntary registration may still be worth considering below the compulsory threshold. It can strengthen credibility with customers and other businesses, allow eligible input tax to be reclaimed and, depending on your circumstances, support cash flow. We can help you prepare your first VAT return and explain the responsibilities that begin from your effective registration date.
For startups, getting the setup right from the start is crucial. We help you choose the right VAT scheme based on turnover, expenses, invoicing and payment patterns. Most businesses use standard VAT schemes and file every three months, although the annual accounting scheme allows eligible businesses with turnover of £1.35 million or less to complete one return each year.
The flat rate scheme may be available where expected taxable turnover is £150,000 or less. It uses a fixed percentage based on the type of business, while limited cost traders generally use a higher rate of 16.5%. The Cash Accounting Scheme may be available where expected taxable turnover is £1.35 million or less and allows VAT to be accounted for when customers pay. We explain each scheme for your business and help you select a practical, tax efficient approach.
For accounting periods beginning on or after 1 January 2023, late returns are handled under a points-based system. Each late return normally earns one point. Once the relevant penalty point threshold is reached, HMRC issues a £200 penalty, with another £200 charged for each further late submission while the business remains at the threshold.
The threshold varies according to filing frequency: two points for annual returns, four for quarterly returns and five for monthly returns. The normal VAT return deadline is one calendar month and seven days after the accounting period ends, and most accounting periods are three months long.
Late VAT payments are dealt with separately from late filing. Interest may accrue from the day after payment was due, and additional penalties may apply when payment remains outstanding. We prepare your figures early, make sure you know when to pay VAT and help you manage each payment through your online account.
A late return alone does not attract a penalty of up to 100% of understated tax. However, inaccurate returns can lead to separate penalties, and a deliberate and concealed inaccuracy can result in a penalty of up to 100% of the potential lost revenue. Small errors on a submitted return can sometimes be corrected on the next return where they fall within HMRC’s correction limits.
VAT calculations involve comparing the output tax collected from customers with the input tax paid on eligible costs. VAT is a value added tax, and the standard rate is currently 20% for most taxable supplies, although reduced, zero and exempt treatments apply to certain goods and services.
To calculate:
If the result is positive, this usually becomes your VAT liability to HMRC. If it is negative, you may be due a repayment. Our team checks every invoice, receipt and transaction so that your figures reflect the correct tax treatment.
Making Tax Digital is a government initiative requiring VAT-registered businesses, unless exempt, to keep specified information digitally and file through compatible software. We support your Making Tax Digital compliance by helping you select suitable accounting software, configure it correctly and keep your VAT records complete throughout each reporting period.
Here’s what MTD for VAT means for your business:
We make MTD simpler by managing the setup, checking your data and confirming that your chosen software supports the required process. Whether you file quarterly, monthly or annually, we keep your records accurate and your submissions compliant.
We offer more than filing support. Our VAT specialists help you understand your obligations and maintain control of your VAT affairs. With over 20 years of experience, we’ve supported businesses across a range of sectors, including construction services, with bookkeeping, tax returns and digital accounting.
You’ll have a dedicated accountant who understands the challenges small businesses face around deadlines, repayments and cash flow. Your VAT accountant can explain your options clearly, review the figures behind your return and help you avoid preventable errors.
We can also help you set up a Direct Debit, advise on practical filing dates and make sure your reporting arrangements fit the way your business operates. Our aim is to provide clear advice, accurate work and reliable ongoing support.
We’re ready to help you stay on top of your VAT responsibilities and avoid the stress of missing a filing deadline or submitting incorrect details. Whether you’re filing one calendar month after your period ends or looking to reclaim overpaid VAT from six months ago, we’re here to help you get it right.
Let’s make your next VAT return simple. Whether you need to complete a quarterly form, need help with a refund or payment process, or want support completing one VAT return each month, our team is on hand. Call, email, or use our contact form today to reach HMRC deadlines with confidence. Looking for any of our other services? We also offer ledger reconciliations, credit control, and more.
