Managing VAT efficiently and maximising reclaim opportunities
VAT affects pricing, cashflow, and profitability — and when managed correctly, it creates significant opportunities to reclaim tax and improve efficiency. At Accounts House, we simplify VAT for businesses across all sectors, ensuring full compliance while helping you maximise reclaim opportunities and avoid unnecessary costs.
We assess the most suitable VAT scheme for your business, manage filings under Making Tax Digital (MTD), and handle HMRC enquiries directly on your behalf. Whether you handle domestic sales, imports, exports, or complex property transactions, we make VAT work for your business, not against it.
When do you need to register for VAT?
You must register for VAT if your taxable turnover exceeds £90,000 in any rolling 12‑month period, or if you expect to exceed this threshold in the next 30 days.
Voluntary registration is often beneficial if you want to reclaim VAT on expenses, supply zero-rated goods or services, or wish to present a more established business profile.
VAT rates
Standard-rated (20%): Most goods and services.
Reduced-rated (5%): Energy and qualifying products.
Zero-rated (0%): Food, books, exports.
Exempt: Rent, insurance, financial services.
VAT schemes
Flat Rate Scheme: Simplifies VAT by applying a fixed percentage to gross sales.
Cash Accounting Scheme: Pay VAT when customers pay you — ideal for improving cashflow.
Annual Accounting Scheme: One VAT return per year with regular instalments.
Margin Schemes: For second-hand goods, art, antiques; VAT is paid only on the profit margin.
Capital Goods Scheme (CGS): Used for high-value purchases such as property to adjust VAT recovery over time.
Retail Schemes: For businesses with large volumes of small transactions.
VAT on property and land
VAT on property is complex and includes option to tax, zero-rating rules, reduced rates, partial exemption and the Capital Goods Scheme. Proper planning ensures correct VAT treatment and maximised recovery.
Making Tax Digital (MTD)
All VAT-registered businesses must maintain digital records and submit returns using MTD-compliant software such as Xero or QuickBooks. We set up digital systems and ensure full MTD compliance.
VAT returns & compliance
Most businesses file quarterly VAT returns summarising output tax, input tax, and the amount payable or reclaimable. Returns and payments are due one month and seven days after the period end.
Cross-border VAT
We advise on import VAT, postponed VAT accounting, overseas supplier VAT, reverse charge rules, and post-Brexit EU VAT compliance requirements.
Penalties
HMRC may issue penalties for late registration, incorrect returns, insufficient record-keeping, late payments, or non-compliance with digital requirements.
How Accounts House helps
VAT registration and de-registration
• VAT return preparation and submission
• Cash Accounting, Flat Rate & Annual Accounting
• Property and land VAT planning
• Import/export VAT compliance
• Handling HMRC enquiries & inspections
• MTD compliance & software setup
• Partial exemption & Capital Goods Scheme calculations
Simplify your VAT. Accounts House ensures you stay compliant, efficient, and always ahead of HMRC.