VAT services for startups

VAT services for startups: registration, returns and advice.

Registration timed to your advantage, the right scheme chosen on your actual numbers, and every quarterly return prepared, checked and filed under Making Tax Digital — included in your fixed monthly fee once you're registered.

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The short answer

We handle VAT end to end for UK start-ups: deciding whether and when to register, choosing between standard, cash accounting and the Flat Rate Scheme, keeping digital records in FreeAgent, and preparing and filing every quarterly return under Making Tax Digital.

VAT is the first tax that punishes bad timing. Register late and HMRC backdates your liability to the day you crossed the threshold — you owe VAT on sales where you never charged it. Register too early while selling to consumers and you've just made yourself 20% more expensive than the competition. Neither mistake is difficult to avoid; both are expensive to unpick.

So we treat VAT as a decision first and an admin job second: work out the right registration date for your customer mix, pick the scheme that suits your cashflow, then run the quarterly cycle so it never lands on your desk again.

What's included

The whole VAT job, not just the filing

Registration, timed properly

We test your rolling 12-month turnover against the £90,000 threshold, watch the 30-day rule that catches start-ups signing a first big contract, and handle the application, effective date and VAT number.

The voluntary-registration maths

If your customers are VAT-registered businesses, registering early usually pays — they reclaim what you charge and you reclaim VAT on your own costs. If you sell to consumers, it's a real price rise. We run the arithmetic before you commit.

Scheme selection

Standard, cash accounting or Flat Rate — compared honestly against your costs and how fast you get paid, including the 16.5% limited-cost-trader rate that quietly kills the Flat Rate benefit for service businesses.

Quarterly returns, filed under MTD

Digital records kept in FreeAgent (included free, worth up to £330 a year), the return prepared and checked by your accountant, submitted on time, with the deadline tracked by us rather than remembered by you.

Pre-registration reclaims

VAT on goods bought up to four years before registration (still owned) and services up to six months before — routinely a four-figure reclaim on a founder's pre-launch spend, and easy to leave on the table.

The awkward edges

Selling digital services to EU consumers, goods moving to and from Northern Ireland under the Windsor Framework, mixed zero-rated and standard-rated sales — the bits generalists gloss over.

How it works

Four steps, then it runs itself

1
Decide whether and when to register
A short call about who your customers are and where turnover is heading. Sometimes the answer is “register now and reclaim”; sometimes it's “not yet — and here's the month to watch”.
2
Register and choose the scheme
We complete the registration, set the effective date, get you authorised with HMRC and pick the scheme on the numbers rather than on habit.
3
Set the records up once
FreeAgent connected to your bank feed (a free Mettle account feeds it natively), receipt capture on your phone, and a separate pot for the VAT you've collected — because it was never your money.
4
We file every quarter
We reconcile, prepare the return, flag anything odd, tell you what's due and when, and submit it. You approve; we do the rest.

What it costs

Inside your monthly fee, not on top of it

VAT work sits inside your fixed monthly band — registration, scheme advice and every quarterly return for registered clients, with FreeAgent included at every level. Bands start at £49 + VAT a month for early-stage companies and rise in clear steps as turnover grows, so there's never a surprise invoice for a return we filed.

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Work it out yourself first

Free VAT tools and reading

VAT for startups: the full guide

When registration bites, the voluntary-registration maths for B2B and B2C, the scheme comparison and MTD filing — free to read.

Read the guide

VAT calculator

Add VAT to a net figure or strip it out of a gross one at 20%, 5% or 0% — plus the registration threshold explained.

Open the calculator

Startup bookkeeping

VAT returns are only as good as the records behind them. See how we keep the books current so each quarter is a non-event.

Bookkeeping services

VAT questions founders ask

Straight answers

Can you register my startup for VAT?

Yes. We check whether you have to register yet, model whether registering early pays for your customer mix, then handle the application, the effective date and getting your VAT number and online account set up.

How much do your VAT services cost?

VAT is part of your fixed monthly band, not a separate bill — registered clients get their returns prepared, checked and filed with no per-return charge. Bands start at £49 + VAT a month for early-stage companies and are confirmed in writing before you commit.

Which VAT scheme should my startup be on?

It depends on your costs and how quickly customers pay. Standard VAT suits most; cash accounting (turnover under £1.35m) means you pay HMRC only once customers have paid you; the Flat Rate Scheme can suit some businesses under £150k but the 16.5% limited-cost-trader rate makes it poor value for most low-cost service start-ups. We run your numbers before choosing.

Do you file VAT returns under Making Tax Digital?

Yes. All VAT returns must be filed from MTD-compatible software with digital records. FreeAgent — included free in every package — keeps those records as a by-product of your bookkeeping, and we check and submit the return each quarter.

Can I reclaim VAT on things I bought before registering?

Often, yes: VAT on goods bought up to four years before registration (if you still own them) and on services up to six months before. On a typical founder's pre-launch spend that's regularly a four-figure reclaim, so keep every receipt.

Can you take VAT over from our current accountant?

Yes — switching is routine. We handle the professional clearance and the authorisation to act with HMRC, pick up your VAT position mid-year, and take the next quarter's return off your hands.