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VAT & Compliance Services

Making Tax Digital (MTD) VAT returns, VAT registration, complex VAT schemes, and HMRC compliance including VAT planning and tribunal support.

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Written by Asrah Abbas, ACA / ACCA — Principal at Westfin Accountants Ltd
Chartered accountant with 12+ years of UK practice experience. Member of the Institute of Chartered Accountants in England and Wales (ICAEW) and the Association of Chartered Certified Accountants (ACCA).
Last updated:

In plain English

VAT is a transaction tax charged on most UK goods and services at 20% (standard), 5% (reduced) or 0% (zero-rated). Every VAT-registered business must file quarterly returns through Making Tax Digital (MTD) software. Westfin manages VAT registration, scheme selection (Flat Rate, Cash Accounting, Annual Accounting, Retail, Margin), reverse charge for construction, and HMRC enquiry support.

Key thresholds & rates (2026/27)

Specific numbers matter when planning. These are the figures we work with day-to-day, sourced from current HMRC and Companies House guidance.

  • VAT registration threshold: £90,000 rolling 12-month turnover (raised from £85k in April 2024)
  • De-registration threshold: £88,000
  • Standard rate: 20% · Reduced rate: 5% · Zero rate: 0%
  • Flat Rate Scheme: available if turnover ≤ £150,000 ex VAT
  • Late submission penalty points (since Jan 2023): 1 point per late return; £200 penalty at threshold

Statutory references

We work to the published HMRC, Companies House and FRC guidance. The primary sources we cite when advising clients:

Worked example

Worked example — Bristol e-commerce brand crossing £90k

A Bristol DTC brand reaches £92,000 trailing 12-month turnover in October. Westfin registers for VAT effective from 1 December, advises against the Flat Rate Scheme (16.5% sector rate would cost more than standard accounting given high cost-of-sales), implements OSS for EU B2C sales, and configures Xero VAT codes across Shopify and Amazon channels. First MTD return filed on time with £4,200 input VAT recovered on inventory.

What's Included

Making Tax Digital (MTD) VAT returns

VAT registration and de-registration

VAT scheme selection (Standard, Flat Rate, Cash)

Partial exemption calculations

VAT planning and advisory

HMRC dispute resolution and tribunal support

Why Choose Our VAT & Compliance Services

MTD compliance from day one

Optimal VAT scheme selection

Maximized VAT reclaims

Reduced audit risk

Expert HMRC correspondence handling

Peace of mind on complex transactions

Frequently Asked Questions

What is Making Tax Digital (MTD) for VAT?

MTD requires VAT-registered businesses to keep digital records and submit VAT returns using MTD-compatible software. We use MTD-compatible platforms (Xero, QuickBooks) to ensure full compliance.

Should I register for VAT if I am below the threshold?

Voluntary VAT registration can be beneficial if you incur significant VAT on purchases, sell mainly to VAT-registered businesses, or want to appear more established. We analyze your situation to recommend the best approach.

What is the VAT Flat Rate Scheme?

The Flat Rate Scheme allows small businesses (turnover under £150k) to pay a fixed VAT percentage on gross turnover, simplifying VAT accounting. It can be beneficial depending on your industry and cost structure.

Ready to Get Started?

Speak to our specialists about VAT & Compliance Services