Digital by law, not by choice
VAT Registration & Making Tax Digital in the United Kingdom
UK VAT is not just a return. The law requires digital records and software-submitted filings.
GCC business setup specialists
Making Tax Digital changed the mechanics
VAT-registered businesses must keep digital records and submit returns through compatible software, with a digital link all the way from the record to the return. Spreadsheets maintained by hand and figures typed into a portal no longer satisfy it. Choosing the right scheme — standard, flat rate, cash or annual accounting — then matters as much for cash flow as for compliance.
- Scheme chosen for your cash flow, not just the default
- Compatible software and digital links set up properly
- Import VAT handled through postponed accounting where it helps
20+
Mainland, free zone and offshore jurisdictions we file in — so the recommendation is based on your activity, not on which authority we happen to be registered with.
7,000+
Companies successfully established.
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Choose the scheme
VAT schemes and what they are for
The default is rarely the best for cash flow.
| Scheme | What it does | Typical fit |
|---|---|---|
| Standard accounting | VAT on invoices issued and received | Most established businesses |
| Cash accounting | VAT when money moves | Slow-paying customers |
| Flat rate scheme | A fixed percentage of turnover | Low-cost service businesses |
| Annual accounting | One return, instalments through the year | Predictable, steady trade |
| Postponed import accounting | Import VAT on the return, not at the border | Importers |
| Voluntary registration | Register below the threshold | Reclaiming input VAT |
The registration threshold, rates, scheme eligibility and Making Tax Digital requirements are set by HMRC and change. Yours are applied as currently in force.
How it works
Getting VAT right
Threshold, scheme, then software.
01
Assess and register
Turnover tested against the threshold, including the rolling twelve-month test, and the right scheme selected before registering.
02
Set up the digital chain
Compatible software configured with digital links from records to return, so submissions actually satisfy the rules.
03
File and review
Returns prepared and submitted on the assigned cycle, with the scheme reviewed as the business changes.
- Turnover, actual and forecast
- What you supply, in detail
- Whether supplies are zero-rated or exempt
- Whether you sell to consumers or businesses
- Whether you sell outside the UK
- Whether you import goods
- Typical customer payment terms
- Your cost base as a share of turnover
- Current accounting software
- Existing registration details
- Any arrears or unfiled returns
- Whether you trade with Northern Ireland
Scope
What is included, and what is not
Stated plainly, so nothing is added once the engagement starts.
Included in the service fee
- Threshold assessment including the rolling test
- Scheme comparison and recommendation
- VAT registration with HMRC
- Compatible software set up with digital links
- Return preparation and submission
- Postponed import accounting set up where relevant
- Zero-rated and exempt treatment advice
- Correspondence with HMRC on routine matters
Not included, quoted separately
- VAT itself, paid at cost
- Penalties and interest for earlier periods
- Accounting software licences
- Customs duties
- Accounts preparation unless included
- Rulings and formal clearances
- Enquiry defence beyond routine correspondence
- Contract renegotiation with customers
Verify independently
Relevant UK authorities
We file directly with these bodies on your behalf.
Companies HouseHM Revenue & CustomsFinancial Conduct AuthorityInformation Commissioner’s OfficeIntellectual Property OfficeInsolvency Service
Questions
UK VAT — FAQs
When must I register for VAT?
Once taxable turnover exceeds the threshold on a rolling twelve-month basis, or if you expect to exceed it in the next thirty days. The rolling test catches growing businesses out.
What does Making Tax Digital require?
Digital records and returns submitted through compatible software, with a digital link from record to return. Manually retyping figures does not comply.
Is the flat rate scheme worth it?
For some low-cost service businesses, yes. For businesses with significant input VAT it usually is not. We compare on your actual numbers.
What is postponed import accounting?
It lets you account for import VAT on your return rather than paying it at the border, which materially helps importer cash flow.
Can I register voluntarily below the threshold?
Yes, and it can be worth it if you have recoverable input VAT or business customers who expect it. It also brings the full compliance burden.
Go deeper
More United Kingdom services
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