VAT Support

If your business’s taxable turnover exceeds £90,000 in any rolling 12-month period, you must register for VAT within 30 days of crossing the threshold.

How we can help:

We’ll review your financials, determine if you're near the threshold, and give you a clear estimate of when you may need to register. If needed, we can handle the entire VAT registration process on your behalf.

VAT Returns

VAT returns are typically filed quarterly and can be smoothly integrated into our bookkeeping service. We’ll ensure your returns are accurate, compliant, and submitted on time — giving you peace of mind and avoiding unnecessary penalties. Important changes to VAT penalties - January 2023

The vat surcharge notice is being replaced by a new penalty system for returns submitted late and for payments made late. This change comes into effect for vat periods starting on or after 1 January 2023.

For each return you submit late you now receive a penalty point until you reach the penalty point threshold. Once you reach that threshold an automatic £200 penalty becomes payable, followed by further penalties of £200 for each subsequent late submission while you’re at the threshold.

VAT returns not affected

  • First Vat return if newly registered

  • Final Vat return after you cancelled your Vat registration

  • One off returns that cover a period other than a month, quarter or year

The penalty point threshold for your accounting period

The penalty point threshold is set by your accounting period. The threshold is the maximum points you can receive.

Accounting period

Annually 2 Penalty points threshold

Quarterly 4 Penalty points threshold

Monthly. 5 Penalty points threshold

Paying VAT late

This affects everyone who submits returns, including a nil or repayment return for vat periods starting on or after 1 January 23. These penalties apply to any payment not made or not made in full by the expected due date.

Summary of late payment penalties

You’ll get a first late payment penalty if your payment is 16 or more days overdue.

When your payment is 31 or more days overdue, your first late payment penalty increases, and you get a second late payment penalty. The penalties are based on 2% for the first late payment penalty and 4% for the second late payment penalty of what is outstanding at that point. This carries on until the balance is paid in full.

VAT penalty scheme explained

Vat schemes and what they mean

  • Standard Rate Scheme

    The amount of Vat a business pays to HMRC is based on the difference between vat charged to customers also known as output tax and vat paid to suppliers also known as input tax. This can result in a refund if your vatable supplier costs outway your income. The returns are usually filed on a quarterly basis.

  • Cash Accounting Scheme

    On this scheme you only pay vat on your sales once you have received the funds from your customer but you also only reclaim the vat on purchases once you paid for the goods or services yourself.

  • Flat Rate Scheme

    Under this scheme you do not claim back any of the vat paid to suppliers, instead it is calculated on your total sales inclusive of vat multiplied by the vat flat rate percentage. This percentage is determined by the type of your business and can vary significantly.