When does my Surrey business need to register for VAT?
You must register when taxable turnover in any rolling 12-month period exceeds £90,000, or when you reasonably expect to exceed it in the next 30 days. Some businesses register voluntarily below the threshold to reclaim VAT on purchases, particularly if their customers are themselves VAT-registered.
What is Making Tax Digital for VAT?
MTD means VAT-registered businesses must keep digital records and file returns through MTD-compatible software (Xero, QuickBooks, FreeAgent, Sage and others). Paper records and manual portal entry are no longer acceptable. Penalties apply for non-compliance.
Should I use the Flat Rate Scheme?
The Flat Rate Scheme pays a fixed percentage of gross turnover instead of standard input/output VAT. It can simplify admin and slightly increase profit for service businesses with few costs, but the 'limited cost trader' rules introduced in 2017 made it less attractive for many. A 30-minute chat with an accountant will confirm if it suits.
How often do I file VAT returns?
Most businesses file quarterly, with returns and payments due one month and seven days after the quarter end. The Annual Accounting Scheme lets eligible smaller businesses make monthly or quarterly instalments and file one return per year — useful for cash flow planning.
What if HMRC opens a VAT inspection?
VAT inspections are routine and can be triggered by repayment returns, unusual patterns, or simple selection. Your accountant should attend or handle correspondence on your behalf, prepare the documentation requested, and challenge any incorrect assessments. Professional representation usually pays for itself in a single inspection.