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Value Added Tax, simplified.
Between registration thresholds, multiple rates, partial exemption and strict deadlines, VAT is one of the most complex taxes for a business to get right. We take the stress out of it.
What is VAT?
If your business is VAT-registered, you charge VAT to customers, pay VAT on most purchases, file regular returns reporting the difference, and pay HMRC the net amount owed – or claim a refund.
The 12-month rolling test & voluntary registration
Unlike Corporation Tax, VAT registration looks at any rolling 12-month period – this catches businesses with seasonal peaks. Voluntary registration below the threshold is often worthwhile if you sell to VAT-registered customers, have significant VAT on purchases, or are a start-up expecting rapid growth.
Filing deadlines & the penalty regime
Standard filing
Filed 1 calendar month and 7 days after the period ends.
No penalty yet
Points accrue but nothing is charged.
£200 penalty
Threshold reached – each further late return adds £200.
2% of VAT due
Late payment penalty, rising to 4% after 30 days.
Common VAT mistakes
What goes wrong
- Registering late – backdated penalties and interest
- Claiming VAT on private purchases
- Charging VAT on exempt supplies
- Not keeping valid VAT invoices
How we help
- We track your turnover and register on time, every time
- Only wholly and exclusively business costs are reclaimed
- Correct treatment of exempt vs. taxable supplies from the start
- Clean records that survive an HMRC inspection
Explore related services
A situation rarely fits one box neatly — here is what else often applies.
Confused by VAT?
Whether you need to register, file returns, or plan for growth, we make VAT simple.