Total Books, VAT accounting and returns
Don’t let a lack of time or knowledge prevent you from making strategic tax savings. VAT is a complex part of accounting, but with the right support, you can minimise the costs. We’re a forward-thinking accounting firm that makes VAT simple and stress-free.
Whether you need support with VAT registration or something more complex, at Total Books, we’re here to help. We use the latest Xero accounting software to help you get faster results with fewer errors.
Book a free 15-minute business consultation with one of our VAT specialists.
What is VAT?
VAT stands for Value Added Tax, which is a type of tax added to most goods and services sold by VAT-registered businesses. It’s a legal requirement to register for VAT once your taxable turnover reaches the VAT threshold of £90,000 (2024/2025) during a 12-month period. Businesses earning less than this amount are exempt from VAT regulations, but they can choose voluntary registration if they prefer.
HMRC requires VAT-registered businesses to uphold certain rules and regulations around sales (Output VAT) and purchases (Input Vat) and paying tax.
These include:
- Charging VAT at the correct rate on goods and services
- Keeping accurate and up-to-date VAT records
- Accounting for VAT on imported goods and foreign sales
- Submitting regular online VAT returns via MTD (usually every 3 months)
- Paying VAT to HMRC on time
Do I need an accountant to do my VAT?
You already have a lot on your plate, and keeping up with VAT responsibilities is hard, especially when some items are VAT-exempt and others aren’t. You have to get everything just right – records, calculations, payment deadlines, the lot. That’s why it’s beneficial to work with a specialist VAT accountant like Total Books.
Working with the right accountant can help you:
- Avoid HMRC penalties for late filing or payment of VAT returns
- Reclaim the full amount of VAT on your business purchases
- Choose the right VAT scheme that saves you money
- Lower your taxable income with careful tax planning
- Ensure various VAT types are recorded correctly
- Stay fully compliant and updated to VAT regulation changes
- Optimise cash flow by planning around tax payments and refunds
Total Books have prepared and filed over 600 returns over the past 25 years saving numerous clients from the hassle of calculating and submitting VAT returns themselves. Our clients love working with a responsive and friendly accountancy firm. But don’t just take our word for it. Take a look at what our happy clients have to say about us!
Our VAT services
At Total Books, we support businesses with every aspect of VAT, from registration to payments and everything in between. Our VAT specialists are there to put your mind at ease while making the process smooth and stress-free.
VAT registration
VAT registration is a huge milestone for many businesses, but it can also feel overwhelming. That’s normal, which is why our services are there to support you from the very start.
We’ll help you register for VAT and set up your VAT online account (Business Government Gateway) with HMRC, get your all-important VAT reference number for collecting VAT and filing returns, help you understand whether voluntary registration is right for you, and handle any hiccups along the way.
VAT advice and planning
Maximising efficiency and minimising costs play an important role in keeping your business profitable. Our team delivers tailored VAT advice and planning, giving you the knowledge and tools to make more informed decisions and save money.
We’ll help you choose the best VAT scheme for your business, identify potential VAT exemptions and reliefs, and select HMRC-approved accounting software for Making Tax Digital.
We’re tax experts, which means we stay updated on VAT laws and compliance so you don’t have to. With our advice, you can be confident that your VAT accounts are in excellent order, and if any changes occur, we’ll be the first to let you know.
We know how tricky it is to resolve complex VAT issues, which is why we handle the back-and-forths with HMRC on your behalf. You can be confident that your VAT liabilities are always in good hands.
VAT returns
Submitting a VAT return is often a time-consuming and complicated task, but with Total Books, it’s one less thing to worry about. We’ll calculate exactly how much VAT you owe and file your return on time with HMRC using our registered MTD filing software, keeping you updated every step of the way.
By handling your VAT returns efficiently, we not only ease the pressure off you, but we help you avoid the costly late payment and late filing penalties of missing a return or VAT payment date.
Why choose Total Books as your VAT accountant?
Guarantee accurate VAT calculations and timely submissions when you choose Total Books for your VAT affairs. Our goal is to make accounting easier for you, putting your mind at ease and freeing up your time to focus on other business matters. We become your registered HMRC VAT agents, dealing with the tax office on your behalf every step of the way.
Need help handling VAT? Call us today on 02920 026 505 or book a free 15-minute meeting to learn more about our services and how we can help.
Frequently asked questions about VAT accounting
Is it worth registering for VAT as a small business?
Registering for VAT, even when you don’t meet the threshold, can help prepare your business for growth and improve cash flow. If your business spends a lot on products and services to keep it running, you can reclaim this VAT and save money. It also builds credibility and trust among customers and suppliers, opening up more opportunities to grow.
Yet it might not always be worth it, especially in a price-sensitive market where you won’t be able to recover as much VAT. Working with Total Books will help you make the right decision based on your situation.
How far back can you claim VAT?
As a VAT-registered business, unless you use the VAT Flat Rate Scheme, you can reclaim any VAT paid on goods and services before registering. This includes up to 4 years back for goods and assets and up to 6 months back for services still used by the business.
For retail and catering businesses that invest over £50,000 in shop refits and equipment before startup, reclaiming pre-registration VAT can lead to significant savings.
What is a ‘VAT scheme’ in the UK?
A VAT scheme offers a simpler way for certain VAT-registered businesses to manage their VAT liabilities.
– Standard VAT Scheme – Most commonly used
– Flat Rate Scheme (FRS) – Simplifies VAT reporting, popular in retail and manufacturing
– Cash Accounting Scheme – Improves cash flow by paying VAT only on payments
– Annual Accounting Scheme, Margin Schemes, and Retail Schemes – Alternative ways to manage VAT
