Question 1

When do I need to register for VAT?

Accepted Answer

You must register for VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily below this threshold — useful if your customers are VAT-registered businesses and you want to reclaim input VAT on your costs.

Question 2

What is Making Tax Digital (MTD) for VAT?

Accepted Answer

MTD for VAT requires all VAT-registered businesses to keep digital records and submit VAT returns using HMRC-compatible software. We handle all MTD compliance using Xero or QuickBooks, so you never need to worry about the technical requirements.

Question 3

Should I use the Flat Rate Scheme?

Accepted Answer

The Flat Rate Scheme can save money if your actual VAT costs are lower than the flat rate percentage for your sector. We analyse your specific situation and advise whether the standard scheme, flat rate, or cash accounting scheme is most tax-efficient for your business.

Question 4

What happens if I submit a VAT return late?

Accepted Answer

HMRC operates a points-based penalty system. Each late submission earns a penalty point; at 4 points you receive a £200 fine, plus further £200 fines for each subsequent late return. We submit all returns on time — you will never receive a late filing penalty while we manage your VAT.

Question 5

Can you handle VAT for multiple business entities?

Accepted Answer

Yes. We manage VAT for sole traders, partnerships, limited companies, and VAT groups. If you have multiple entities that could benefit from VAT grouping, we assess eligibility and handle the application to HMRC.

Question 6

Do you handle VAT on international transactions?

Accepted Answer

Yes. We advise on place of supply rules, reverse charge VAT, import VAT, and post-Brexit EU trade. If you sell digital services to EU consumers, we can also assist with the One Stop Shop (OSS) registration.

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