VAT and Making Tax Digital

Businesses over the registration threshold, businesses approaching it, and anyone who has registered voluntarily and is not sure it was the right call.

Registration and the threshold

You must register once your taxable turnover passes the threshold on a rolling twelve-month basis, and the test catches people out because it is not tied to your accounting year. Registering late means paying VAT you never charged your customers.

Voluntary registration can also make sense — particularly if your customers are VAT registered themselves and you have significant input tax to reclaim. It is worth deciding deliberately rather than by accident.

Schemes worth knowing about

The standard scheme is not always the right one. Cash accounting means you only pay VAT once your customer has paid you, which matters enormously if you are carrying slow payers. Annual accounting reduces the filing burden. The flat rate scheme can suit some low-cost businesses.

We look at your actual numbers and tell you which applies, rather than defaulting everyone to standard.

How this helps you

• You register at the right time. Not late, and not earlier than you need to.
• Cash flow improves. The right scheme can mean you are not paying VAT on money you have not received.
• Returns are filed under MTD properly. Digital records, digital links, compatible software.
• Penalty points are avoided. The current regime is points-based, and they accumulate quietly until a fine lands.