VAT Returns
VAT returns for UK businesses
Accurate, MTD-compliant VAT return preparation and submission for UK small businesses. All VAT schemes covered — so you stay compliant, reclaim everything you're entitled to, and never miss a deadline.
Making Tax Digital for VAT
Making Tax Digital (MTD) for VAT requires all VAT-registered UK businesses to keep digital records and submit VAT returns using MTD-compatible software. This has applied to all VAT-registered businesses since November 2022 — there are no exemptions for most businesses.
If you're still submitting your VAT returns manually through your HMRC online account, you're likely non-compliant and could face penalties. MTD-compliant software — like Xero or QuickBooks — is now required by law.
At Taxbox Consulting, every VAT return we prepare is submitted digitally through HMRC's MTD system. We also ensure your bookkeeping records meet HMRC's digital record-keeping requirements, so you're fully protected if HMRC ever asks to see your records.
Important: MTD for Income Tax is coming
MTD for Income Tax Self Assessment (MTD ITSA) is being rolled out from April 2026 for businesses and landlords with income over £50,000. We can help you get ready.
VAT registration thresholds
Thresholds correct as of 2024/25. Check HMRC for the latest figures.
VAT schemes explained
Choosing the right VAT scheme can save you money and reduce admin. We advise on the best option for your business.
Standard VAT Accounting
Account for VAT when you issue or receive an invoice. The most common scheme — straightforward and works for most businesses.
Suitable for
Most VAT-registered businesses
- Maximises input VAT recovery
- Simple to understand
- No turnover limit
Flat Rate Scheme
Pay a fixed percentage of gross turnover to HMRC instead of tracking VAT on every transaction. Can simplify record-keeping.
Suitable for
Turnover under £150,000/year
- Simpler record-keeping
- Potentially more tax-efficient
- Reduces admin burden
Cash Accounting
Account for VAT only when payment is received or made — not when invoices are issued. Better for businesses with slow-paying customers.
Suitable for
Turnover under £1.35M/year
- Improves cash flow
- Pay VAT when paid
- No VAT on bad debts
What's included in our VAT return service
A complete VAT compliance service — from preparation to submission and everything in between.
Quarterly VAT Preparation
Full preparation of your VAT return from your bookkeeping records — input VAT, output VAT, and net figures calculated correctly.
MTD-Compliant Submission
Your return filed digitally through HMRC's MTD system using Xero or QuickBooks — fully compliant with Making Tax Digital requirements.
VAT Scheme Advice
We review your VAT scheme and advise if a different scheme could save you money or simplify your reporting.
Input VAT Review
We check that you're claiming all input VAT you're entitled to on business expenses — maximising your reclaim.
HMRC Correspondence
We deal with any HMRC queries or notices about your VAT account on your behalf, keeping communications professional and on time.
VAT Registration Support
Not yet VAT-registered? We handle the registration process with HMRC and advise on the best scheme for your business.
Frequently asked questions
Common questions about VAT returns and Making Tax Digital for UK businesses.
What is Making Tax Digital for VAT?
Making Tax Digital (MTD) for VAT is HMRC's requirement that all VAT-registered businesses keep digital records and submit their VAT returns using MTD-compatible software. MTD for VAT has applied to all VAT-registered businesses since November 2022. If you're VAT-registered and still submitting manually through your HMRC online account, you may already be non-compliant.
When do I need to register for VAT?
You must register for VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period (the current threshold from April 2024). You can also register voluntarily below this threshold — which can be beneficial if your customers are mainly VAT-registered businesses, as you can reclaim input VAT on your purchases.
How often do I need to submit a VAT return?
Most businesses submit VAT returns quarterly. However, some businesses submit monthly (particularly those who regularly receive VAT refunds) and some submit annually under the Annual Accounting Scheme. We prepare and submit your returns in line with your VAT period and HMRC deadlines.
What is the VAT flat rate scheme?
The VAT flat rate scheme is available to businesses with annual taxable turnover under £150,000. Instead of calculating VAT on each individual transaction, you pay a fixed percentage of your gross turnover to HMRC. The flat rate varies by business type and can sometimes be more tax-efficient — we can advise whether it's right for your business.
What is the difference between standard VAT and cash accounting?
Under standard VAT accounting, you account for VAT when you issue or receive an invoice — regardless of whether payment has been made. Under cash accounting, you account for VAT only when money changes hands. Cash accounting can help cash flow for businesses with slow-paying customers, as you don't pay VAT to HMRC until you've been paid.
What happens if I miss a VAT return deadline?
HMRC operates a points-based penalty system for late VAT returns and late payment. You receive a penalty point each time you miss a deadline, and once you reach a threshold (based on your filing frequency), a financial penalty of £200 applies — plus further penalties for continued failures. We ensure your returns are always submitted on time.
Never miss a VAT deadline again
Get in touch for a free, no-obligation quote on VAT return preparation and MTD-compliant submission tailored to your business.