VAT & MTD. Done right.

You must register within 30 days when your rolling 12-month taxable turnover exceeds £90,000, or when you expect to exceed it in the next 30 days alone. Registration is also compulsory if you take over a VAT-registered business as a going concern. Voluntary registration below the threshold can make sense if your customers are VAT-registered and you have meaningful input VAT to reclaim — we'll model both before you decide.

Possibly, if your VAT-bearing costs are low and your turnover is under £150,000. You pay a fixed percentage of gross turnover (typically 10–16.5% depending on trade) and don't reclaim input VAT on most purchases. The 16.5% 'limited cost trader' rate introduced in 2017 killed the benefit for many consultancies. We compare both schemes against your last 12 months before recommending.

All VAT-registered businesses must keep digital records and file returns via MTD-compatible software — typing numbers into HMRC's portal hasn't been allowed since November 2022. We file directly from Xero, QuickBooks, FreeAgent, or Sage so there's no copy-paste step and digital links are preserved end-to-end. Late MTD filings now attract points-based penalties: hit 4 points and a £200 fine kicks in.

Mobile and broadband used partly for business, mileage VAT on fuel scale charges, pre-registration VAT on goods (up to 4 years back) and services (6 months back), staff entertaining (subject to limits), and VAT on construction services under the reverse charge. We do a backdated reclaim review on every new client — it usually pays for a chunk of the first year's fees.

Once your bookkeeping is up to date — which we manage if you're on a bookkeeping plan — the return is reviewed and filed within 5 working days, comfortably before the 7th of the second month after period end. You always see the return and the calculation before we submit. Included in Premium plans (from £199/month); standalone VAT-only filings start at £75 per return.