VAT Returns and Making Tax Digital, Handled Properly
VAT is the tax most businesses get wrong without realising it. The rules touch almost every transaction you make, the deadlines come round four times a year, and Making Tax Digital has changed how records must be kept and returns must be filed. Our Richmond team handles VAT and MTD compliance for small businesses across South West London, so the returns go in accurately, on time, and through software HMRC accepts.
Should your business be VAT registered?
You must register when your taxable turnover passes £90,000 in any rolling 12 month period, or when you expect it to pass that level in the next 30 days alone. Plenty of businesses register earlier by choice, perhaps to reclaim VAT on costs or because customers expect it. Others should wait, because registering too early can put prices up for customers who cannot reclaim VAT themselves.
We will look at your figures and your customer base and give you a straight answer on whether to register now, later, or not yet. If registration is right, we handle the application with HMRC and set up your record keeping from day one.
Choosing the right VAT scheme
The standard scheme is not the only option, and for many small businesses it is not the best one:
- Standard accounting: VAT is based on invoice dates, which can strain cash flow if customers pay late.
- Cash accounting: You account for VAT when money actually changes hands. Often kinder for small businesses with slow payers.
- Flat rate scheme: You pay a fixed percentage of your turnover and skip most input VAT calculations. Simple, and sometimes surprisingly cost effective.
- Annual accounting: One return a year with monthly or quarterly payments on account. Predictable, with less admin.
The right choice depends on your turnover, your costs and how your customers pay. We will run the comparison for you and review it as your business changes.
Your VAT returns, filed on time
Most of our clients file quarterly. We prepare the return from your bookkeeping, check the figures against your records, and file through MTD compatible software before the deadline, which falls one month and seven days after the end of each VAT period. If we also keep your books, the return is largely a review exercise rather than a scramble. If you keep your own records, we will tell you exactly what we need and when we need it.
Making Tax Digital for VAT
Every VAT registered business must now keep digital records and file returns through compatible software. Copying figures by hand between systems breaks the digital link HMRC requires. If spreadsheets are still part of how you work, we can bridge them to MTD compliant software so your process stays legal without forcing you to rebuild it overnight. If you are moving onto Xero, Sage, QuickBooks or FreeAgent, we will set up the connection and file your first return with you.
MTD for Income Tax is arriving in stages
Making Tax Digital is not only about VAT. Sole traders and landlords with qualifying income over £50,000 came into MTD for Income Tax from April 2026, and the threshold falls to £30,000 from April 2027. Quarterly updates replace the single annual return for income from self employment and property. If that is you, or it will be you soon, we can get your records into shape now and handle the quarterly submissions when your turn comes.
VAT reviews and HMRC enquiries
Some transactions need more care than a standard return allows: property deals, partial exemption, imports and exports, and sales that mix standard, reduced and zero rated items. Our VAT review service checks complicated transactions before they cause a problem. And if HMRC opens a VAT inspection or a compliance enquiry, we deal with the correspondence, prepare the records they ask for, and stand between you and the process as far as we properly can.
Common questions
I have missed a VAT deadline. What happens now?
Tell us quickly. Late filing and late payment now run on a points and penalty system, and acting early limits the damage. We will file the outstanding return and deal with HMRC on penalties where there is a reasonable excuse.
Can I stay on spreadsheets under MTD?
Yes, with the right bridging software and digital links in place. We set that up for several clients who are happy with their spreadsheets and see no reason to change them.
Do you only work with businesses in Richmond?
Our office is in Richmond and most clients are local, across South West London. MTD filing is digital, so we can act for VAT clients further afield too.
Talk to us about VAT
If VAT is taking up too much of your time, or you are unsure whether your current setup complies with MTD, book a free first consultation. Call our Richmond team on 020 8287 1047 or send a message through the form below, and we will give you a clear picture of where you stand.
Get in Touch!