We work out when you should register, choose the VAT scheme that suits your figures, and prepare, check and file every quarterly return under Making Tax Digital. Once you are registered, this is covered by your fixed monthly fee.
If you register for VAT late, you owe VAT from the date you should have been registered, including on sales where you never charged it. If you register early while selling to consumers, you become 20% more expensive than competitors who do not charge VAT.
We start by working out the right registration date for your mix of customers and choosing the scheme that suits your cashflow. Then we prepare and file each quarterly return for you.
We have a short call about who your customers are and where your turnover is heading. Then we tell you either to register now and reclaim VAT on your costs, or which month to watch if you do not need to register yet.
We complete the registration, set the effective date, get you authorised with HMRC and choose the scheme based on your figures.
We connect Xero to your bank feed and set up receipt capture on your phone. The VAT you collect goes into a separate pot, so the money is there when the return is due.
We reconcile your accounts, prepare the return, raise anything unusual with you, and tell you what is due and when. Once you approve the return, we submit it.
Your monthly fee covers registration, scheme advice and, once you are registered, every quarterly return. Accounting and tax for a limited company starts at £49 a month + VAT, confirmed in writing before you commit.
When you have to register, whether registering early pays when you sell to businesses or to consumers, how the VAT schemes compare, and filing under Making Tax Digital.
Read the guideAdd VAT to a net figure or take it out of a gross one at 20%, 5% or 0%. The page also explains the registration threshold.
Open the calculatorA VAT return is prepared from your records. See how we keep your books up to date through the year.
Bookkeeping servicesYes. We check whether you have to register yet and whether registering early would save you money, given who your customers are. Then we make the application, set the effective date, and get your VAT number and online account set up.
VAT returns are covered by your monthly fee once you are registered. Each quarter's return is prepared, checked and filed for you. Accounting and tax for a limited company starts at £49 a month + VAT, confirmed in writing before you commit.
It depends on your costs and how quickly customers pay. Standard accounting suits most businesses. Cash accounting, for taxable turnover of £1.35 million or less, means you pay VAT to HMRC only once your customers have paid you. The Flat Rate Scheme can suit some businesses with taxable turnover of £150,000 or less, but a business that spends very little on goods has to use the 16.5% rate for limited cost traders, which makes the scheme poor value for most startups that sell services. We run your numbers before choosing.
Yes. All VAT returns must be filed from software that works with Making Tax Digital, using digital records. Xero keeps those records as part of your bookkeeping, and we check and submit the return each quarter.
Often, yes. You can reclaim VAT on goods bought up to four years before registration, if you still own them, and on services bought up to six months before. Keep every receipt from before you register.
Yes. We handle the professional clearance with your current accountant and the authorisation to act for you with HMRC, pick up your VAT position part-way through the year, and prepare and file the next quarter's return.
