VAT Returns
MTD-compliant VAT returns submitted accurately and on time, with ongoing advice to ensure you're on the most tax-efficient VAT scheme.
What's included
VAT compliance is one of the most common sources of errors and penalties for small businesses. The rules are complex, deadlines are strict, and the wrong VAT scheme can cost you money. At Claritax, we handle your VAT returns from end to end.
Since April 2019, VAT-registered businesses with taxable turnover above the threshold must comply with Making Tax Digital (MTD) for VAT, meaning returns must be submitted digitally via MTD-compatible software. We manage this on your behalf using approved software.
- Quarterly VAT return preparation and MTD-compliant submission
- Review of input and output VAT to ensure accuracy
- Advice on the best VAT scheme for your business (standard, flat rate, cash accounting, annual accounting)
- VAT registration and deregistration handled on your behalf
- Voluntary VAT registration advice
- Partial exemption calculations where applicable
- VAT on imports and exports guidance
- HMRC VAT enquiry support
VAT schemes explained
One of the most valuable things we do is make sure you're on the right VAT scheme. The difference can be significant:
- Standard VAT accounting, the default. You account for VAT on invoices issued and received.
- Flat Rate Scheme, pay a fixed percentage of your gross turnover. Often advantageous for service businesses with low costs.
- Cash Accounting Scheme, only account for VAT when you're actually paid, helping cash flow.
- Annual Accounting Scheme, one VAT return per year with advance payments. Less admin.
We'll analyse your business and recommend the scheme that minimises your VAT liability.
VAT registration
You must register for VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period (2026/27 threshold). However, voluntary registration can be beneficial even below this threshold, particularly if your customers are VAT-registered businesses who can reclaim the VAT you charge.
We'll advise you on whether and when to register, and handle the application with HMRC on your behalf.
Key VAT deadlines
VAT returns are due one month and seven days after your VAT period ends. We track and manage all deadlines for you, you'll never face a late filing penalty.
Related services
Frequently asked questions
When do I need to register for VAT?
Registration is mandatory once your taxable turnover passes £90,000 in any rolling 12-month period, not your accounting year. You must also register if you expect to pass it within the next 30 days alone.
Which VAT scheme is best for my business?
It depends on your costs and customer base. The Flat Rate Scheme often suits service businesses with low costs, Cash Accounting helps cash flow if customers pay late, and standard accounting suits businesses with significant input VAT to reclaim. We compare these against your actual numbers, or try our VAT scheme comparer tool.
What is Making Tax Digital for VAT?
MTD requires VAT-registered businesses above the threshold to keep digital records and submit returns through MTD-compatible software, rather than typing figures directly into HMRC's portal. We handle this for you using approved software.
Can I register for VAT voluntarily below the threshold?
Yes, and it can be worthwhile if your customers are VAT-registered businesses who can reclaim the VAT you charge, or if you have significant VAT on costs you would like to reclaim. We can talk through whether it makes sense for you.
What happens if I file a VAT return late?
HMRC operates a penalty points system for late VAT returns, plus interest on VAT paid late. We track your VAT deadlines as standard so this shouldn't come up, but we can also help if you're already behind.
Take the stress out of VAT
Let Claritax handle your VAT returns so you never miss a deadline or pay a penny more than you should.