VAT Returns,
MTD compliant.
MTD-compliant VAT filing, scheme advice, and expert HMRC liaison — so you never miss a deadline or overpay.
What Are VAT Returns?
VAT (Value Added Tax) is charged on most goods and services in the UK at 20% (standard rate), 5% (reduced rate), or 0% (zero rate). VAT-registered businesses must collect VAT from customers, pay VAT on purchases, and submit a quarterly return to HMRC showing the net position.
Under Making Tax Digital (MTD), all VAT-registered businesses must use approved software to keep digital records and submit returns. We manage this entire process on your behalf, ensuring accuracy and compliance every quarter.
VAT Schemes Explained
The Standard VAT scheme is the default option, where you account for VAT on invoiced amounts — paying VAT on sales invoices raised and reclaiming VAT on purchases received, regardless of when payment actually changes hands. The Flat Rate Scheme offers a simpler alternative: rather than tracking VAT on every transaction, you pay a fixed percentage of your VAT-inclusive turnover to HMRC, which is set by your trade sector. For some businesses, particularly those with low input VAT, the Flat Rate Scheme results in a lower net VAT bill. We calculate whether it is beneficial for you before recommending it.
Cash Accounting is an alternative to the Standard scheme where VAT is accounted for only when payment is received or made, rather than when invoices are raised. This can be helpful for businesses with customers who pay slowly, as it avoids having to fund the VAT on an invoice before the customer has settled it. The Annual Accounting scheme allows businesses to submit a single VAT return per year with interim payments throughout, which can simplify administration for smaller businesses with predictable turnover.
All VAT-registered businesses must comply with Making Tax Digital (MTD), keeping digital records and submitting returns through MTD-compatible software. Mandatory VAT registration applies once your taxable turnover exceeds £90,000 in any rolling 12-month period, though voluntary registration below this threshold can be worth considering if your customers are themselves VAT-registered. We advise on the best scheme for your circumstances and manage every aspect of your VAT compliance.
Why Choose Brathwaite?
MTD-compliant VAT returns submitted digitally via approved software
Quarterly VAT preparation and submission handled in full
VAT scheme advice — standard, flat rate, cash accounting, and annual
VAT registration and deregistration applications managed
International VAT and cross-border supply chain guidance
HMRC VAT enquiry representation and correspondence
Frequently Asked Questions
When do I need to register for VAT?
You must register for VAT when your VAT-taxable turnover exceeds £90,000 in any rolling 12-month period (as of 2024/25). You can also register voluntarily if your turnover is below this threshold, which can be beneficial if you supply other VAT-registered businesses.
What is Making Tax Digital for VAT?
MTD for VAT requires all VAT-registered businesses to keep digital records and submit VAT returns using MTD-compatible software. This has been mandatory for all VAT-registered businesses since April 2022. We ensure your VAT returns are fully MTD-compliant.
Which VAT scheme is best for my business?
The best VAT scheme depends on your turnover, business type, and cash flow profile. The standard rate scheme is most common; the flat rate scheme can be simpler and sometimes more profitable for certain businesses; cash accounting helps businesses with late-paying customers. We advise on the most advantageous option for you.
What happens if I submit a VAT return late?
HMRC operates a points-based penalty system for late VAT submissions. Accumulating too many points results in financial penalties. Interest is also charged on VAT paid late. We manage all your VAT deadlines proactively to ensure this never becomes an issue.