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VAT Accounting Services in the UK
Our VAT accounting service helps businesses across the UK stay compliant, file accurate returns, and optimize tax efficiency.
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What is VAT?
Value Added Tax (VAT) is a consumption tax applied to most goods and services in the UK. Businesses that exceed the £90,000 VAT threshold must register for VAT and charge it on their sales. The standard VAT rate is 20%, though some goods and services have reduced or zero rates.
VAT-registered businesses collect VAT from customers and pass it to HMRC. However, they can also reclaim VAT paid on business expenses, reducing their tax burden.
What is a VAT Return?
A VAT return is a report businesses submit to HMRC, usually every quarter, summarizing:
- Total sales and VAT collected
- Total purchases and VAT paid
- The difference (VAT owed or reclaimed)
If your VAT collected is higher than your VAT paid, you pay the difference to HMRC. If you’ve paid more VAT than you’ve collected, you can claim a refund. Filing VAT returns on time is crucial to avoid penalties and interest charges.
Who Needs a VAT Accountant?
Businesses hitting the £90,000 VAT threshold (2024 update)
E-commerce sellers dealing with international VAT
Companies facing VAT audits or HMRC inquiries
Businesses looking to save time and avoid VAT filing mistakes
Digital solutions
Expert VAT Accountants for UK Businesses
VAT rules in the UK are strict, and non-compliance can lead to penalties. Our VAT accountants make sure your business follows the latest HMRC guidelines, avoiding errors that could cost you money. From VAT registration to quarterly and annual VAT returns, we handle it all.
VAT Registration & Compliance
Not sure if your business needs VAT registration? We guide you through the process, helping you register at the right time to avoid unnecessary tax burdens.
VAT Return Preparation & Filing
Filing VAT returns on time is crucial. We prepare accurate VAT reports, ensuring every reclaimable expense is accounted for, helping you reduce your tax bill where possible.
VAT Planning & Advice
Different VAT schemes suit different businesses. We assess your model and recommend the best option, whether it's Flat Rate, Standard, or Cash Accounting.
VAT Audits & HMRC Support
Facing an HMRC VAT audit? We handle correspondence, check records for accuracy, and provide professional representation, ensuring a smooth process.
VAT for E-commerce & International Trade
Selling online or operating globally? UK VAT laws for cross-border transactions are complex. We help with VAT registrations abroad, OSS (One Stop Shop), and correct VAT handling for international sales.
Get VAT Help Today
Avoid VAT headaches and let professionals handle the process. Contact us today for a free VAT consultation and find out how we can help your business stay compliant while optimizing tax efficiency.
testimonials
Our Client Success Stories
See how our VAT accounting support has helped UK businesses and scale-up streamline finances, maximize tax relief, and stay investor-ready.
"The team at is exceptional. They’ve helped streamline our accounting processes, provide insightful financial advice, and always ensure we stay compliant with tax regulations. Highly recommended!"
EVERFRESH FOOD AND WINE
"Working with Crestline has been a game-changer for our business. Their professionalism, proactive approach, and deep industry knowledge have significantly improved our financial strategy. They are an invaluable partner."
TOM WOOD
"We’re very impressed with the service provided by Crestline. Their team is thorough, responsive, and always goes the extra mile to meet our accounting needs. We trust them with all our financial matters."
ROHIT KAPOOR
"The level of service and expertise is outstanding. They’ve consistently helped us navigate complex financial situations with ease, providing clear, actionable insights every step of the way."
JAMIE HUNT
"Our experience with Crestline has been nothing short of excellent. The team is highly professional, knowledgeable, and always responsive to our needs. They truly understand the unique challenges we face."
KELLY HILL
"We are extremely pleased with the service from Crestline. Their attention to detail, deep understanding of our business, and personalized approach have helped us achieve our financial goals with confidence."
SHAZIA KHAN
"I ’m happy with the support I get from Crestline. They handle everything smoothly, and I feel confident with their advice."
ANDREW BELL
"Fantastic service! Emma is quick, accurate, and always ready to help with any questions. I highly recommend them!"
Olivia Richard
"Their team is amazing! They make everything so easy to understand and are always on top of things. Highly recommend their services!"
DAVID BROWN
UK VAT Accounting Schemes
Choosing the Right VAT Scheme for Your Business
Flat Rate Scheme
A simpler way to manage VAT, where you pay a fixed percentage of your turnover instead of calculating VAT on each transaction. This works well for small businesses with minimal VAT reclaimable expenses.
- Fixed VAT percentage based on industry
- Less paperwork and easier record-keeping
- Can save money if expenses are low
Standard VAT Accounting
The traditional method where businesses charge VAT on sales, reclaim it on purchases, and submit quarterly VAT returns. Ideal for companies with significant VAT recovery.
- VAT is tracked on all transactions
- Allows full VAT reclaim on eligible purchases
- Suitable for businesses with high expenses
Cash Accounting Scheme
Helps businesses manage cash flow by paying VAT only when customers pay their invoices, rather than when sales are recorded. Useful for businesses dealing with late payments.
- Delays VAT payments until money is received
- Reduces cash flow pressure for small businesses
- Only available if turnover is under £1.35 million
Why Work with a VAT Accountant?
VAT rules can be tricky, but you don’t have to handle them alone. We take care of everything – from registration to returns, so you stay compliant and save money.
- VAT Registration & Compliance: Get registered at the right time and follow HMRC rules without the hassle.
- Accurate VAT Returns: No missed deadlines or miscalculations; we handle it all.
- Choosing the Right VAT Scheme: Flat Rate, Standard, or Cash Accounting? We find the best fit for your business.
- Support During VAT Audits: If HMRC checks your records, we manage the process for you.
- VAT for E-commerce & Global Sales: Selling internationally? We handle VAT registrations abroad and apply the right tax rules.
Let us handle VAT, so you can focus on growing your business.
Hassle-Free VAT Filing for UK Businesses
VAT returns are more than just paperwork. They impact your cash flow and tax liability. Mistakes can be costly, but we make filing simple and stress-free.
Our experts track your VAT obligations, manage deductions, and submit accurate returns, keeping your business compliant with HMRC. We also provide guidance on VAT-saving opportunities, helping you reduce unnecessary costs.
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Get Expert VAT Support in UK
Get rid of the VAT headache and let us handle the numbers. From registration to filing, we’ve got you covered. Reach out today, and let’s make VAT simple and stress-free.
faqs
Most Popular Questions
How is VAT different from other business taxes?
VAT is a tax on goods and services that businesses collect on behalf of HMRC. Unlike corporation tax, which is paid on profits, VAT is charged on sales and can be reclaimed on business expenses. It affects cash flow differently, as businesses must track both input and output VAT.
How do I choose the right VAT scheme for my business?
The best VAT scheme depends on your turnover, industry, and cash flow. The Flat Rate Scheme simplifies VAT payments, Standard VAT Accounting tracks VAT on all transactions, and Cash Accounting helps with cash flow by delaying VAT payments until invoices are paid.
What happens if I miss the VAT return deadline
Late VAT returns can lead to penalties from HMRC. The first late submission may result in a warning, but repeated delays can trigger financial penalties based on the amount of VAT owed.
Can I reclaim VAT on all business expenses?
You can reclaim VAT on most business-related expenses, but some costs, like entertainment and certain vehicles, may not be eligible. Keeping accurate records is key to maximizing VAT reclaims.
How does VAT affect online businesses selling in the UK?
UK e-commerce businesses must charge VAT on sales within the UK. If selling to the EU, VAT rules depend on whether you use the Import One Stop Shop (IOSS) or register for VAT in individual countries.
What is Making Tax Digital (MTD) for VAT?
MTD requires VAT-registered businesses to keep digital records and submit VAT returns using HMRC-approved software. It aims to reduce errors and streamline tax reporting.
What should I do if I made a mistake in my VAT return?
If the error is below £10,000, you can correct it in your next VAT return. For larger mistakes, you must notify HMRC separately using a VAT652 form.
Do small businesses need to register for VAT?
Businesses must register for VAT if their turnover exceeds £85,000 in a 12-month period. If turnover is below this, registration is optional but can be beneficial if you want to reclaim VAT on expenses.