VAT Returns

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 (2024/25 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.