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Whether you’re a startup struggling to decide if you should register for VAT or a group of businesses with a complex VAT structure, we can help.
Our VAT accountants, based in Manchester but working with businesses across the UK, remove the stress and time-consuming admin from managing your affairs.
We even offer a free, no-obligation consultation where you can explain your situation, hear our advice, and learn more about working with us.
In the UK, VAT is charged on the sale of most goods and services. It’s fairly simple and you should be familiar with the main principles: you charge and collect VAT on things you sell, and you pay VAT on things you buy.
You keep records of how much VAT you’ve charged and how much you’ve paid. Then, you submit that information to HMRC (usually once a quarter) and they’ll calculate your VAT bill.
However, there are exceptions and rules that turn VAT from simple to stressful in an instant.
For example, a business doesn’t need to register for VAT (and therefore doesn’t need to charge it) until it hits a taxable turnover of £90,000. Yet, it can often make sense to register voluntarily before that point if you want to reclaim VAT on things you pay for.
Meanwhile, some businesses can benefit from schemes that change how they calculate and report VAT.
And then there’s Making Tax Digital, which requires VAT-registered businesses to maintain records and submit their returns through government-approved cloud accounting platforms, such as Xero.
It can get quite complicated and, unfortunately, there’s no room for error. Making a mistake on your VAT returns could lead to over or underpayments, trigger an HMRC investigation, and cost your business a huge amount of time and money.
But that’s where we come in. As your VAT accountants, we can help:
Plus, we can do all this alongside your regular bookkeeping and accounting for an all-in-one, comprehensive service. We’ll lift the administrative burden off your shoulders and allow you to focus elsewhere.
As a firm of chartered accountants with three decades of experience, our VAT specialists have dealt with all types of VAT affairs over the years.
As an independent, family-owned firm, we build client relationships often lasting many years by offering a personal service that larger firms simply can’t match.
We're proud of our work and the kind feedback we receive from our clients. Check out our reviews and testimonials to see what makes us so well-placed to help you.
Whether it's a question about your VAT return or something else, we'll review your situation and provide free advice in our initial consultation.
The UK has three VAT rates:
You need to figure out which rate your goods or services fall under before charging VAT (the government website can help).
As standard, most businesses file their VAT returns quarterly, although not always. For example, small businesses with a turnover of less than £1.35m can file annually (reducing admin), while those with a high volume of transactions may submit monthly returns for greater control.
As part of Making Tax Digital, your VAT return must be filed electronically, and the VAT paid within one month and seven days after the end of the accounting period.
Yes, as long as you’re VAT registered, you can claim back the VAT on eligible goods and services you’ve purchased (make sure to check what’s eligible). The total amount you’ve paid is reduced from the amount you’ve charged to calculate your VAT liabilities. If you’ve charged more than you’ve paid, you’ll send the difference to HMRC. But if you’ve paid more VAT than you’ve charged, HMRC will repay you.
Mistakes can happen and, fortunately, HMRC is fairly forgiving. You can correct mistakes in the previous 4 years of VAT returns as long as the net value of the error is less than £10,000. You simply add an adjustment on your next return.
For larger errors or multiple errors, you may need to notify HMRC separately. Our VAT experts can help you determine the best course of action.
HMRC has a penalty structure for late VAT returns and payments. The structure is based on a points system, where repeated failures to meet deadlines rack up more points and, eventually, result in fines.
So, if you submit your return late, you’ll get a point. Depending on whether you have any previous points, this could result in a fine of £200.
A late payment can result in a much more severe penalty than a late submission. First, interest is charged daily. Then, depending on how late your payment is, you could receive a percentage-based fine (e.g. 2% of the VAT you owe after 15 days late). If you’re struggling to pay on time, it’s best to speak to HMRC and agree on a payment plan.
A specialist can assist with VAT registration, return preparation, and reclaiming VAT on business expenses. We can also advise on VAT schemes, such as the Flat Rate Scheme, and help with compliance issues, including dealing with HMRC investigations on your behalf. In short, we make sure you’re managing VAT efficiently and avoiding penalties.
We offer a free consultation for all new clients – either over the phone or in person. To get started, fill in the contact form or call us on 0161 962 1855 to speak to our VAT accountants.
“Great local firm of accountants. Have taken all the stress out of both my personal and business accounting. The high level of customer service and approachability at A&C have kept me as a client for 3 years plus now, together with them being local, as sometimes it’s best to discuss things face to face.”
David P.
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The Chancellor is set to deliver the Autumn Budget 2025 on 26 November, and this one is shaping up to be significant. With the government facing ongoing fiscal challenges, we may see further tax rises aimed at tackling the public finance deficit.
A recent First Tier Tribunal case, Charlotte MacDonald v HMRC, has highlighted the importance of demonstrating that a trade is carried on with a genuine intention to make a profit. The taxpayer was denied sideways loss relief for losses arising from the organisation of an annual ‘woodland shoot’ on an estate.
HMRC withdrew Form VAT652 (Error Correction) on 8 September 2025. This form was previously used to notify HMRC of VAT return errors that could not be corrected on the next VAT return.