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?

 Please note that not every business needs to register for VAT. It is compulsory however if:

  • Your total VAT taxable turnover for the last 12 months was over £85,000 (the VAT threshold)
  • You expect your turnover to exceed £85,000 in the next 30 days

Regardless of your VAT taxable turnover, you must also register for VAT if:

  • You’re based outside the UK
  • Your business is based outside the UK
  • You supply goods or services to the UK (or expect to in the next 30 days)


When do I need to register for VAT?

If, by the end of any given month, your total VAT taxable turnover for the last 12 months exceeds £85,000, you should register for VAT.

You will need to do this within 30 days of the end of the month when you went over the threshold. Your effective date of registration is the first day of the second month after you go over the threshold.


How do I register for VAT?

You can register for VAT by heading to the 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:

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 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 Flat Rate Scheme?

Using the Flat Rate Scheme can save time, smooth cash flow and provide many other benefits including:

  • You don’t have to record the VAT that you charge on every sale and purchase
  • With less time spent doing the bookkeeping, you can dedicate more time to your business
  • For smaller businesses, it can really help to simplify the VAT process

To be eligible to join the VAT Flat Rate Scheme, your business must be VAT-registered and expect VAT taxable turnover to be £150,000 or less.

If you’re unsure if the Flat Rate Scheme is right for your business, please get in touch with PKB and we’ll be able to advise.


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?

We understand that there’s a lot to consider when it comes to VAT. If you’d like to speak to an experienced advisor, please get in touch and we can arrange a no-obligation chat. As well as sharing everything you need to know about VAT, we’ll also be able to advise whether it’s something you can manage yourself or if you can benefit from a professional team.

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


Yvonne Miles

Whether you’re starting up a new company or up until now haven’t been charging VAT, it’s especially important that you have the procedures in place to ensure that you avoid any potential pitfalls.