Service
VAT returns on a quarterly rhythm you can rely on.
Registration, scheme selection and Making Tax Digital submissions, with the underlying records reconciled first so the numbers stand up to scrutiny.
- Making Tax Digital submissions
- Scheme suitability reviewed
- Reconciled before filing
Overview
Getting VAT right, quarter after quarter
VAT is unforgiving of loose record keeping. A return that is filed from unreconciled data may be accepted without complaint and still be wrong, and errors tend to compound quietly until something forces a review.
We work the other way round: reconcile the records first, check the treatment of anything unusual, then file. It takes slightly longer each quarter and saves a great deal of time later.
What you get
What is included
Everything from deciding whether to register through to the quarterly routine.
Registration support
We check whether registration is required or worthwhile, then handle the application and the effective date.
Scheme review
Standard, cash, annual and flat rate schemes each suit different businesses. We model the options against your figures before recommending one.
Quarterly reconciliation
Sales and purchases are reconciled to your bank and to your records before the return is prepared, not afterwards.
Making Tax Digital filing
Returns are submitted through compatible software, keeping the digital links HMRC requires intact.
Deadline and payment reminders
You know what is due and when, with enough notice to move money before the payment date.
More detail
The treatments that most often go wrong
Most VAT errors we see are not deliberate. They come from applying a general rule to a transaction that has its own treatment.
- Entertaining costs, where input VAT is generally blocked
- Vehicles and fuel used partly for private journeys
- Purchases from suppliers outside the UK, where the tax may need to be accounted for by you
- Sales that are zero-rated or exempt being treated as standard-rated, or the reverse
- Deposits and stage payments recorded in the wrong period
- Bad debts, where relief is available only once specific conditions are met
If something has gone wrong
Errors found in earlier returns can usually be corrected, either on a later return or by notifying HMRC separately, depending on the size and nature of the error. Correcting an error voluntarily is almost always a better position than waiting for it to be discovered.
If you think a previous return may be wrong, tell us. We will work out what the correct position is and the appropriate way to put it right.
Process
The quarterly routine
The same sequence every quarter, so you always know where things stand.
Step 01: Records in
Bookkeeping is brought up to date shortly after the quarter ends.
Step 02: Reconciled
Sales, purchases and bank balances are agreed and anything unusual is queried.
Step 03: Return reviewed
You see the figure due, and the reason for any significant change from last quarter.
Step 04: Submitted
The return is filed and you receive confirmation plus the payment deadline.
Questions
Common questions
If something is not covered here, ask us directly and we will give you a straight answer.
It depends who your customers are. If they are VAT-registered businesses, registering allows you to reclaim VAT on your costs without making yourself more expensive to them. If you sell mainly to the public, registration usually increases your prices or reduces your margin, so the case is much weaker.
For some low-cost service businesses it can be, and for others it costs more than the standard method. The answer depends on your turnover, your VAT-bearing costs and the percentage that applies to your sector. It is worth calculating rather than assuming.
You need records kept digitally and a way of filing that meets Making Tax Digital requirements. Several options exist at different price points, and we will help you pick one that fits how you actually work.
HMRC may ask to review records for a period. Where you have authorised us to act, we deal with the correspondence, help you assemble what is requested and explain anything they query. Well-reconciled records make the process considerably shorter.
Approaching the VAT threshold?
The useful time to plan is before you cross it. Get an indicative figure that includes quarterly VAT work.