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VAT & Making Tax Digital

VAT Returns &
MTD Compliance

MTD-compliant VAT return preparation and HMRC submission — accurate, on time, every quarter. Including VAT registration, scheme selection, partial exemption, domestic reverse charge, and error correction if your returns have a gap.

MTD-compatible direct submission
All VAT schemes covered
CIS and DRC handled
Error correction included

End-to-end VAT management — not just a submission

Every VAT return we prepare is reviewed for accuracy before submission. We do not simply pull a figure from your software and click submit — we check the coding, review the transactions, and confirm the return is correct.

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Quarterly VAT Return Preparation

Full VAT return prepared from your accounting software each quarter. Transaction review, coding check, and reconciliation to VAT control account before submission. Box 1–9 completed and explained.

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MTD Direct Submission to HMRC

Submitted directly to HMRC via MTD-compatible software with digital link compliance. Confirmation of receipt and filing reference provided every quarter. No manual re-keying, no bridging risk.

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VAT Registration & Deregistration

Application for VAT registration when your taxable supplies approach the £90,000 threshold (2024/25). Voluntary registration advice where input tax recovery justifies it. Deregistration managed on cessation or below-threshold trading.

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Error Correction & Disclosure

Net errors of up to £10,000 corrected on the next return. Errors exceeding this or involving deliberate underdeclaration disclosed separately to HMRC using VAT652. We handle the disclosure and correspondence on your behalf.

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Domestic Reverse Charge (DRC)

Construction sector domestic reverse charge applies to most CIS supplies between VAT-registered businesses. We identify where DRC applies, ensure your invoices and returns are correctly structured, and avoid the common error of charging VAT on DRC supplies.

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VAT Scheme Review & Optimisation

Annual review of whether your current VAT scheme is the most advantageous. Flat Rate Scheme, Cash Accounting, Annual Accounting, and Margin Scheme — each has cash flow and compliance implications we evaluate against your trading pattern.

The scheme you are on affects both your cash flow and your compliance burden

Not all VAT-registered businesses should be on the standard method. The right scheme depends on your turnover, the nature of your customers, your payment terms, and your input tax recovery needs.

Standard Method

VAT accounted for on invoice date. Most common. Correct for most businesses with regular credit terms and full input tax recovery needs.

Cash Accounting

VAT accounted for when cash is received or paid. Protects cash flow for businesses with slow-paying customers — you do not pay VAT before you have been paid.

Flat Rate Scheme

Pay a fixed percentage of gross turnover rather than calculating input and output VAT separately. Simpler, but only beneficial in specific circumstances — particularly where input tax recovery is low.

Annual Accounting

One VAT return per year with advance payments on account. Reduces admin but reduces flexibility — not suitable for businesses with highly variable quarterly trading.

Making Tax Digital — what it actually requires

MTD for VAT requires digital record-keeping and a digital link from your records to your submission software. It is not sufficient to manually re-key figures from a spreadsheet into an online portal. Every business VAT-registered in the UK (above or below the threshold) must comply. We ensure your records, your software, and your submissions are all fully MTD-compliant.

Any VAT-registered business in the UK — and businesses approaching the threshold

  • Ltd companies and sole traders already VAT-registered who need quarterly returns handled professionally
  • Businesses approaching the £90,000 VAT registration threshold who need to plan ahead
  • Construction businesses navigating the domestic reverse charge — one of the most commonly mis-applied rules in VAT
  • Businesses who have filed their own returns and are now unsure whether previous returns were correct
  • Businesses on the Flat Rate Scheme who have not reviewed whether it is still beneficial since the Limited Cost Business rules changed
  • Businesses with mixed supplies (standard-rated, zero-rated, exempt) requiring partial exemption calculations

VAT — frequently asked

My turnover is below £90,000 — do I have to register?

Mandatory registration only applies once your taxable supplies in any rolling 12-month period exceed £90,000 (current threshold). However, voluntary registration can be beneficial if your customers are VAT-registered businesses (you can reclaim input VAT) or if you want to appear more established. We advise on whether voluntary registration is right for your specific situation.

What is the domestic reverse charge and does it affect me?

The Construction Industry Domestic Reverse Charge (DRC) applies to most CIS supplies between VAT-registered contractors and subcontractors. Instead of the subcontractor charging VAT, the contractor self-accounts for it. Getting this wrong — either by charging VAT when DRC applies or applying DRC when it does not — creates errors in both parties' VAT accounts. It affects almost every construction business we work with.

I think I may have made errors on previous returns. What should I do?

First, do not panic. HMRC has a statutory error correction process — errors are corrected either on the next return (net errors up to £10,000) or by separate disclosure (larger errors or deliberate underdeclarations). Early voluntary disclosure attracts significantly lower penalties than errors discovered by HMRC. We handle the identification, correction, and any correspondence with HMRC.

VAT done right, every quarter.

Book a free consultation. We will review your current VAT position, confirm you are on the right scheme, and give you a fixed quarterly fee for managed VAT compliance going forward.

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