VAT accounting support
Keep your VAT records accurate—and every return on track.
Whether you’re approaching the registration threshold, considering voluntary registration or already submitting VAT returns, we’ll explain what applies, maintain the necessary digital records and help make sure the right information reaches HMRC on time.
Quick start
Ask about VAT support
Share your VAT position and current record-keeping setup.
When VAT applies
VAT registration depends on what you sell and how your turnover is changing.
You do not need to wait until the end of an accounting year to consider VAT. The registration test looks at your taxable turnover over a rolling 12-month period, while a separate rule applies if you expect to exceed the threshold within the next 30 days.
Approaching the threshold
If your taxable turnover is getting close to £90,000, we’ll help you monitor it regularly, understand which sales count and prepare before registration becomes urgent.
Over the threshold
You must normally register if your total taxable turnover for the previous 12 months exceeds £90,000. We’ll establish when the threshold was crossed, calculate the relevant dates and help complete the registration.
Expecting a significant increase
You may also need to register if you expect your taxable turnover to exceed £90,000 within the next 30 days alone—for example, because of a large contract or a sudden increase in sales.
Considering voluntary registration
A business can sometimes register while its taxable turnover remains below the compulsory threshold. We’ll explain the practical effect on your prices, customers, costs and administration so you can make an informed decision.
Already VAT registered
If you are already registered, we can review the existing setup, confirm the VAT scheme and return periods, and take over the records and submissions where appropriate.
What does “taxable turnover” mean?
Taxable turnover is the total value of the sales that are not exempt from VAT. It is measured before deducting business expenses and is not the same as profit.
Not sure whether a sale counts or when you need to register? We’ll review the position before you take the next step.
How we help
Support from registration through to every return.
VAT affects more than the figures submitted to HMRC. We’ll help establish the correct position, organise the underlying records and manage the recurring work needed to keep your returns accurate and on time.
VAT registration
We’ll confirm the relevant turnover and dates, complete the registration and explain when you must begin charging VAT and keeping the required records.
Voluntary-registration guidance
If registration is not yet compulsory, we’ll explain the practical considerations—including your customers, pricing, costs and administration—so you can decide whether registering voluntarily is appropriate.
VAT scheme review
We’ll consider how the business operates and explain the VAT accounting options that may be available. If a particular scheme is appropriate, we’ll help establish it correctly.
Digital record keeping
We’ll configure FreeAgent and the necessary bookkeeping process so VAT transactions are recorded digitally and the supporting information remains organised.
VAT return preparation and submission
We’ll review the records, resolve questions, prepare the return and explain the figures before submitting it to HMRC as your agent.
Corrections and overdue returns
If previous returns contain errors or submissions are outstanding, we’ll assess what needs correcting, agree the scope of the work and help bring the VAT position up to date.
VAT deregistration
If the business has stopped trading, changed direction or no longer needs to remain registered, we’ll review whether deregistration is appropriate and support the necessary process.
One connected service—from understanding when VAT applies to maintaining the records and completing each return.
VAT registration checker
Check whether you may need to register for VAT.
Answer a few questions to get an initial indication. This checker provides general guidance rather than a definitive VAT-registration decision.
This checker gives a general indication based on the information entered. It does not consider every VAT rule, exception or business circumstance and is not a substitute for advice based on your complete position. VAT thresholds and rules can change, so the checker should always use the current HMRC requirements.
VAT records and FreeAgent
Accurate VAT returns begin with organised digital records.
A VAT return is produced from the business’s underlying sales, purchases and adjustments. We’ll configure FreeAgent and the bookkeeping process so the relevant information is captured consistently and remains ready for each submission.
Record VAT on sales
Sales invoices and other income need the correct VAT treatment and tax point. We’ll help configure the appropriate rates and identify transactions that require further review.
Capture VAT on purchases
Purchase invoices and receipts provide the evidence needed to support VAT recovery. We’ll help keep these documents connected to the relevant transactions and identify costs where VAT may not be fully recoverable.
Connect bank feeds and useful integrations
Secure bank feeds, receipt-capture tools, payment platforms and other suitable integrations can reduce manual entry and bring more of the information into one connected process.
Keep different VAT treatments clear
Standard-rated, reduced-rated, zero-rated, exempt and outside-the-scope transactions must be recorded correctly. We’ll review unusual activity rather than relying on software to make the decision automatically.
Maintain the digital link
Where information moves between systems, we’ll use appropriate integrations or compatible processes to preserve the digital records needed for Making Tax Digital for VAT.
Reconcile the records
We’ll compare the bookkeeping with bank activity, sales information and supporting documents, investigate differences and resolve questions before preparing the return.
Keep the information moving throughout the quarter—not scattered across bank accounts, inboxes and spreadsheets when the return is due.
How it works
A clear routine for every VAT period.
We’ll agree who is responsible for each part of the bookkeeping, when information is needed and how questions will be resolved. The same process then keeps each return moving from current records to an approved submission.
1. Keep the records current
Sales, purchases, expenses and bank transactions flow into FreeAgent throughout the VAT period. You provide any documents or explanations that cannot be collected automatically.
2. Review and reconcile the information
We’ll check the bookkeeping, reconcile the relevant accounts and identify missing documents, unusual transactions or VAT treatments that need clarification.
3. Resolve the remaining questions
We’ll send a clear request for anything needed to complete the return rather than leaving unexplained items until the submission deadline.
4. Prepare and explain the return
We’ll calculate the VAT due to HMRC or repayable to the business, complete the necessary checks and send you the figures for review. We’ll explain any significant or unexpected amounts.
5. Approve and submit
Once you have approved the return, we’ll submit it to HMRC through compatible software and confirm that the submission has been completed.
6. Prepare for payment or repayment
We’ll confirm the amount and relevant payment deadline where VAT is due. If the return shows a repayment, we’ll explain what happens next and highlight any information HMRC may request.
Current records. Clear questions. No uncertainty about whether the return has been filed.
Where VAT becomes less straightforward
Not every transaction fits neatly into a VAT box.
Software can record the rate selected, but it cannot always decide whether that treatment is correct. We’ll help identify transactions and changes that need closer attention before they create errors across several returns.
Different types of sales
A business may make standard-rated, reduced-rated, zero-rated, exempt or outside-the-scope sales. We’ll help establish the appropriate treatment rather than assuming every sale follows the same rule.
Mixed business and personal costs
Where a purchase has both business and private use, the amount of VAT that can be recovered may need to be restricted. We’ll review the purpose of the cost and apply the appropriate treatment.
Vehicles, travel and entertaining
VAT recovery can depend on what was purchased, how it is used and who benefits. We’ll review the supporting information instead of treating every vehicle, travel or hospitality cost in the same way.
International sales and purchases
Buying from or selling to customers and suppliers outside the UK can introduce place-of-supply, import, export and reverse-charge considerations. We’ll identify when specialist treatment or additional information is needed.
Construction and domestic reverse charge
Certain supplies between VAT-registered construction businesses can follow the domestic reverse-charge rules. We’ll help determine when these rules apply and make sure the invoices and bookkeeping are treated consistently.
Property transactions
Rent, property sales, construction work and related costs can have different VAT treatments. Speak to us before a significant transaction where possible, particularly if an option to tax or mixed use may be involved.
Changes, refunds and unpaid invoices
Credit notes, customer refunds, bad debts and corrections can affect the VAT figures for a later period. We’ll make sure changes are reflected in the appropriate return and supported by the necessary records.
When something unusual happens, ask before repeating the same treatment across every transaction.
VAT catch-up and corrections
A VAT problem is easier to resolve once the true position is clear.
If registration was missed, returns are overdue or previous figures may be wrong, contact us as soon as possible. We’ll establish what happened, identify the affected periods and agree a practical route for bringing the position up to date.
Late VAT registration
We’ll review the historic taxable turnover, determine when registration may have become compulsory and help complete the application using the appropriate effective date.
Overdue VAT returns
We’ll identify which periods are outstanding, bring together the available records and prioritise the work needed to complete the missing submissions.
Errors in previous returns
If you discover an omitted invoice, duplicated transaction or incorrect VAT treatment, we’ll assess the type and value of the error and determine the appropriate way to correct it.
Incomplete or unreliable records
We can reconstruct the relevant bookkeeping from bank activity, invoices, receipts and other available information, while clearly identifying anything that remains missing or uncertain.
HMRC letters and assessments
If HMRC has contacted you or issued an estimated assessment, we’ll review the correspondence, explain what it means and help prepare the information needed for an appropriate response.
Penalties and interest
Late registration, submissions or payments may result in penalties or interest. We cannot promise that these will be removed, but acting promptly can prevent the position from becoming worse and provide more time to explain any relevant circumstances.
A better routine going forward
Once the immediate issue is resolved, we’ll configure FreeAgent, suitable integrations and an agreed bookkeeping process to help keep future VAT records and returns on track.
No judgement—just a clear assessment of what is outstanding and what needs to happen next.
VAT FAQs
Common questions about VAT registration and returns.
When does a business need to register for VAT?
A business must normally register when its taxable turnover for the previous 12 months exceeds £90,000 or when it expects its taxable turnover to exceed £90,000 within the next 30 days alone. Different rules can apply in some circumstances, so we’ll confirm the position and relevant dates.
What is taxable turnover?
Taxable turnover is the total value of sales that are subject to VAT before business expenses are deducted. It includes standard-rated, reduced-rated and zero-rated sales. Exempt and outside-the-scope sales are not normally included, although the treatment should be checked where the business makes different types of supply.
Can I register voluntarily?
A business making taxable sales can sometimes register while its turnover remains below the compulsory threshold. Whether this is worthwhile depends on factors including its customers, prices, VAT-bearing costs and additional administration. We’ll explain the practical effect before you decide.
How often are VAT returns submitted?
Most businesses submit a VAT return every three months, although monthly or annual arrangements may apply in some circumstances. We’ll confirm your VAT periods and keep the relevant submission dates visible.
When is a VAT return and payment due?
The return and payment are usually due one calendar month and seven days after the end of the VAT period. Your online VAT account confirms the exact deadline. Payment must reach HMRC by the due date, so the payment method and processing time should also be considered.
Do I need to submit a return if there is no VAT to pay?
Yes. A VAT-registered business must normally submit a return for every required period even when it has no VAT to pay or reclaim.
What VAT can the business reclaim?
A VAT-registered business can generally reclaim VAT on eligible purchases used for its taxable business activities, provided it has the necessary evidence. Restrictions can apply to private use, entertaining, vehicles, mixed taxable and exempt activities, and other particular costs.
Can I reclaim VAT paid before registration?
In some circumstances, yes. VAT may be recoverable on qualifying goods bought within four years before registration if the business still holds them, and on qualifying services received within six months before registration. The purchases must relate to the registered business and the appropriate evidence must be retained.
Does Making Tax Digital apply to VAT?
Most VAT-registered businesses must keep specified records digitally and submit VAT returns using compatible software. We’ll configure FreeAgent and the connected bookkeeping process so the records and submissions follow the digital requirements.
Can Forest Finance take over my existing VAT returns?
Yes. We’ll review the registration details, VAT periods, current scheme, bookkeeping and any previous issues before agreeing the handover. If you are changing accountant, we’ll also manage professional clearance and request the relevant records.
What if a previous VAT return is wrong?
Tell us as soon as you identify a possible error. We’ll establish what happened, which periods are affected and the appropriate correction method. The process can depend on the nature, value and timing of the error.
Still unsure what applies to your business? Use the VAT checker or talk the position through with us.
VAT next step
Share your VAT position and what needs clarifying.
Tell us where you need help with VAT registration, returns, records or filing.
VAT route
VAT support works best when records and filing are connected.
We can review your VAT position and recommend the right support for returns, deadlines and records.
- Tell us whether you are VAT registered, approaching registration or need filing support.
- Forest Finance reviews your records, deadlines and VAT return needs.
- You receive a clearer route for VAT filing and record keeping.
Useful if you are approaching VAT registration, behind on VAT records, or want VAT returns connected properly to bookkeeping.
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