Register on time, pick the right scheme and file every VAT return through Making Tax Digital software. DKAT handles VAT for London businesses so you do not have to chase HMRC deadlines.
A VAT accountant registers your business for VAT, chooses the right scheme, keeps your records digital under Making Tax Digital and files your returns on time. DKAT Accountants, FCCA-qualified and based in London, handles VAT registration, quarterly returns, scheme advice, error corrections and HMRC penalty appeals for a fixed fee. You must register once taxable turnover passes £90,000 in any 12 months.
VAT problems tend to arrive at three moments: before you register, during your first returns, and when a letter from HMRC lands.
Six jobs a VAT accountant should take on, so your returns are right and on time.
Which category your sales fall into decides whether you must register and whether you can reclaim VAT on costs.
| Category | Rate | Counts towards £90,000? |
|---|---|---|
| Standard rate: most goods and services | 20% | Yes |
| Reduced rate: a limited list, such as children’s car seats | 5% | Yes |
| Zero rate: most food, books, children’s clothes, exports | 0% | Yes |
| Exempt: insurance, most education and health services | No VAT | No |
The right scheme can ease cash flow or cut your VAT bill. The wrong one costs money. We compare them on your figures.
| Scheme | How it works | Who can join |
|---|---|---|
| Standard accounting | Output VAT on sales less input VAT on costs, each quarter | Any VAT-registered business |
| Flat Rate Scheme | Pay a fixed percentage of VAT-inclusive turnover and generally reclaim no input VAT | Turnover £150,000 or less excluding VAT |
| Cash Accounting | Account for VAT when customers pay you and when you pay suppliers | Turnover £1.35 million or less |
| Annual Accounting | One return a year with advance payments in between | Smaller businesses, subject to HMRC conditions |
| Requirement | Rule |
|---|---|
| Register for VAT | Within 30 days of the end of the month you exceed £90,000 |
| VAT return and payment | 1 month and 7 days after the VAT period ends |
| Digital records and returns | Compulsory for every VAT-registered business through MTD software |
| Late return penalty (quarterly) | 1 point per late return, £200 at 4 points and for each late return after |
| Late payment penalty | First penalty after 15 days, second after 30 days, plus a daily charge |
| Deregister | If you expect taxable turnover below £88,000 over the next 12 months |
Two situations we see often. Names are illustrative and figures use current UK VAT rules.
Tom still charges customers 20% VAT, but he pays HMRC only 11% of the VAT-inclusive total and keeps the difference. In his first year the 1% discount cuts the rate to 10%, so he pays £7,200 and saves £3,200. His goods spend of £3,000 is above the limited cost test, so he avoids the 16.5% rate. The scheme is not always better. A business with the same sales but £40,000 of costs plus £8,000 of VAT would pay HMRC only £4,000 under standard accounting, which is £3,920 less than the flat rate bill of £7,920.
Goods you still own can be claimed for up to four years before registration. Services only go back six months, so Ben loses £300 on the legal fees. Stock he already sold is also out of reach. Had he registered three months earlier, the legal fees would have fallen inside the six-month window. Registering voluntarily before big start-up spending is often worth modelling.
We act for VAT-registered businesses across Greater London. Your records and returns live in cloud software, so we work with you by phone, email or video wherever you trade. Our bookkeeping and VAT service adds monthly records and management reports if you want everything under one fee, and our small business accountants page covers the wider service.
Vietnamese-speaking business owners can use our Vietnamese VAT and bookkeeping page.
Send a few details and an FCCA accountant will reply within 12 hours with next steps and a fixed-fee quote. There is no obligation.
Prefer to talk? Call 07990 572720 between 9am and 6pm, Monday to Friday.