VAT Services

VAT is a complex tax and whatever the size of your business, issues can arise. PKB Accountants offers a range of VAT services which can help your business to thrive.

Do I need to register for VAT?

Not every business is required to register for VAT. However, VAT registration is compulsory if:

• Your total VAT taxable turnover for the last 12 months exceeds £90,000 (the current VAT registration threshold).
• You expect your VAT taxable turnover to exceed £90,000 in the next 30 days alone.

VAT taxable turnover includes most goods and services subject to VAT, including those that are zero-rated, but excludes VAT-exempt supplies.

You may also need to register for VAT regardless of your turnover if your business is based outside the UK and you supply goods or services to the UK, subject to the relevant VAT rules and exceptions.

Businesses with turnover below £90,000 can also choose to register voluntarily, which may be beneficial in certain circumstances.

When do I need to register for VAT?

If your total VAT taxable turnover exceeds £90,000 over any rolling 12-month period, you must normally register for VAT.

You must register within 30 days of the end of the month in which you exceeded the threshold. Your effective date of registration will usually be the first day of the second month after you exceeded the threshold.

If you expect your VAT taxable turnover to exceed £90,000 in the next 30 days alone, you must notify HMRC by the end of that 30-day period. Your effective registration date will be the date you first expected to exceed the threshold.

How do I register for VAT?

You can register for VAT by heading to the gov.uk website.

You’ll be asked to create a VAT online account (sometimes known as a ‘Government Gateway account’) which you can use to submit your VAT Returns to HM Revenue and Customs (HMRC).

Alternatively, we can do this for you.

Can I do VAT submissions myself?

Many small businesses choose to do their own VAT submissions because it’s easy to manage. If you’re a larger business however, you may struggle to keep up with everything.

It’s also important to remember that rules for things like payroll and VAT change frequently, so you’ll need to keep up to date with the latest requirements.

Do I need to be registered for MTD?

If you’re VAT registered, it’s now a requirement to sign up and follow the rules for ‘Making Tax Digital for VAT’. This means you will need to:

• Keep digital records
• Submit your business’s VAT return using compatible software

If you’re not already signed up, find out how to sign up and start keeping digital records, by getting in touch with PKB

Please head to our Making Tax Digital for VAT service page to find out everything you need to know.

What software do I need for VAT submissions?

Please note that from 1 November 2022, you won’t be able to use your existing VAT online account to send quarterly or monthly VAT Returns.

You need to sign up for Making Tax Digital (MTD) for VAT and use compatible software to keep your VAT records and file your VAT Returns.

Before you sign up to Making Tax Digital for VAT, you’ll need either:

• A compatible software package that allows you to keep digital records and submit VAT Returns. Typically, it’s larger organisations that require online accounting software.
• Bridging software to connect non-compatible software (like spreadsheets) to HMRC systems. If you’re a smaller business, we can offer our bridging software to help you with your VAT submissions.

Please head to our Xero and Online Accounting page to find out more about the different software options for your business.

How often do I need to do a VAT Return?

Typically, VAT returns are submitted quarterly. If you apply to HMRC however, you may be able to submit yours monthly or annually.

What are the deadlines for filing and making payments?

Filing and payment of VAT submissions are due one month + seven days after quarter-end.

Those on direct debit payments with HMRC get an extra five days to make payment.

Should I apply for the VAT Flat Rate Scheme?

The VAT Flat Rate Scheme is designed to simplify VAT accounting for smaller businesses. Depending on your circumstances, it could save you time, reduce administration and help you manage your cash flow more effectively.

Benefits of the Flat Rate Scheme can include:

• Simpler VAT calculations – pay HMRC a fixed percentage of your VAT-inclusive turnover, based on your business sector.
• Less administration – simplify your VAT accounting while maintaining the digital records required under Making Tax Digital.
• Potential financial savings – depending on your business type and expenses, the scheme could reduce the amount of VAT you pay to HMRC.
• More time for your business – spend less time managing VAT calculations and more time focusing on running your business.

Who is eligible?

To join the VAT Flat Rate Scheme, your business must be VAT-registered and expect VAT taxable turnover of £150,000 or less (excluding VAT) over the next 12 months.

Businesses with relatively low expenditure on goods may be classed as limited cost traders and required to use a flat rate of 16.5%. This can make the scheme less beneficial, so it is important to check whether it is suitable for your business.

How can PKB Accountants help?

At PKB Accountants, we can assess whether the Flat Rate Scheme is right for your business, explain the potential savings and ensure you meet your VAT and Making Tax Digital obligations.

Contact PKB Accountants today for expert advice on choosing the most suitable VAT scheme for your business.

Are there any benefits to voluntary VAT registration?

Although VAT registration is a requirement for businesses with a taxable turnover above the threshold, you can voluntarily register your business for VAT.

What are the benefits of doing this?

• You avoid potential financial penalties if go over the threshold without realising
• It can boost your business profile by creating the impression that your company is bigger than it is
• You will be issued with a VAT registration number which makes it easier to deal with external businesses. You can also display this on your website and any marketing collateral which adds a professional touch
• You can claim VAT on goods and services purchased for your business

If you’re an organisation which deals with other VAT registered businesses, we generally recommend voluntary VAT registration. If you predominantly work with individuals however, please bear in mind that you will need to increase your prices to allow for VAT.

What can I claim VAT back on?

When claiming VAT back, you can only do so on goods and services that are used wholly and exclusively for your business and purchased within the UK.

This can include office supplies, computers, equipment, transport costs and services such as accountancy.

If something is partially used for both your business and personal use, such as home broadband, you can only claim back a proportion of the VAT equal to the amount used by your business.

To find out more about what you can and cannot claim VAT back on, please get in touch with PKB and we’ll be happy to help.

Do I have to charge VAT on all of my income?

Any sales that are made to UK customers will be subject to VAT and therefore should be charged.

Why should I outsource VAT?

As a busy business owner, it’s unlikely that you have time to keep up with the ever-changing tax and VAT laws in the UK. As proactive accountants, it’s our job to do this so you don’t have to. We provide up-to-date advice on both general and specific VAT issues which will ensure that you remain compliant with current regulations and thus avoid miscalculations of payment.

What’s included in PKB’s VAT service?

 At PKB Accountants, we can review your VAT records to ensure that you are complying with VAT requirements.  This will minimise the risk of receiving penalties and/or interest from any subsequent visits from HMRC.

Getting VAT calculations right is a common challenge for many businesses because misunderstanding regulations can result in unintentional over or underpayment. We can do preparation of quarterly VAT returns to prevent this from happening. This will include compulsory online filing.

How can I find out more information about PKB’s VAT service?

At PKB Accountants, we can help you determine whether your business needs to register for VAT, guide you through the registration process and ensure you comply with HMRC requirements.

Whether you are approaching the VAT threshold, considering voluntary registration or need assistance with Making Tax Digital, our experienced team is here to help.

To make an appointment, simply contact us and a member of the team will be more than happy to help.