VAT returns

Essentials › Accounting › VAT returns

Finance foundationsUnited Kingdom

The problem it solves

VAT is easy to get wrong. Businesses miss the point where they must register, charge the wrong rate, reclaim VAT they are not entitled to or overlook the reverse charge on services bought from abroad. Errors bring penalties and interest, and a large VAT bill can catch a growing business short of cash.

What it covers

  • Monitoring turnover against the registration threshold
  • Registering with HMRC
  • Preparing and filing returns through MTD-compatible software
  • Checking rates, partial exemption and reverse-charge items
  • Choosing between schemes such as Flat Rate, Cash Accounting and Annual Accounting
  • Handling HMRC questions and checks

Who it is for

Companies that are VAT-registered, close to the threshold, or registering voluntarily to reclaim VAT on their costs.

Good to know in the UK

  • You must register when taxable turnover goes over £90,000 in the previous 12 months, or if you expect it to go over £90,000 in the next 30 days alone. The government confirmed the threshold stays at £90,000 from April 2026.
  • Most businesses file quarterly, with the return and payment due one calendar month and seven days after the end of the period.
  • Late returns and late payments are penalised under a points-based system, with interest charged on late payments.

Questions to ask a provider

  • Will you check our VAT position before every return?
  • Can you advise which VAT scheme saves us the most?
  • Is Making Tax Digital software included?
  • Do you deal with HMRC on our behalf?

This is a plain-English summary for United Kingdom businesses. It is general information, not financial, tax or legal advice, and rules change: facts last checked 8 November 2026. Speak to a qualified adviser about your own situation.