VAT Services

Value Added Tax is one of the most significant obligations facing UK businesses, yet it is also one of the most commonly misunderstood. From April 2024, the VAT registration threshold stands at  £90,000 of taxable turnover in any rolling twelve-month period. Once your business exceeds this threshold, you are legally required to register for VAT and begin charging it on your goods and services. Failing to register on time can result in backdated assessments, penalties, and interest charges from HMRC.

For businesses across Guildford, Woking, and the wider Surrey area, getting VAT right from the outset is essential. Incorrect VAT returns, missed deadlines, and poor record keeping can all lead to costly mistakes. Whether you are approaching the threshold for the first time, already VAT-registered, or considering voluntary registration, having a knowledgeable accountant on your side ensures you remain compliant and avoid unnecessary financial penalties. At 360 Accounts & Bookkeeping, we take the complexity out of VAT so you can concentrate on running your business.

With our VAT service, you never have to worry about missing a deadline or submitting an inaccurate return. We maintain a comprehensive calendar of your VAT obligations and proactively gather the information we need well in advance of each filing date. Our approach is thorough, systematic, and designed to give you complete peace of mind that your VAT affairs are in expert hands.

When you engage us, we begin by carrying out a thorough assessment of your current VAT position. This includes reviewing your turnover, the nature of your supplies, and whether you are registered under the most appropriate scheme. If you are not yet registered but are approaching or have exceeded the threshold, we handle the registration process promptly to avoid any penalties from HMRC.

Once registered, we take care of preparing and submitting your VAT returns each quarter. We reconcile your sales and purchase records, identify any reclaimable input VAT, and ensure every figure on your return is accurate before submission. Where applicable, we also help you reclaim VAT on pre-registration expenses, which many businesses overlook. HMRC allows you to reclaim VAT on goods purchased up to four years before registration and services purchased up to six months before, provided they relate to your VAT-taxable business activities.

We work with businesses of all sizes and sectors across Guildford, Woking, Godalming, Farnham, and the surrounding Surrey towns. Whether you prefer to meet at our Guildford office, communicate by telephone, or work with us entirely online, we adapt our service to suit your needs.

VAT deadlines are strictly enforced by HMRC, and late submissions or payments can result in financial penalties. Here are the key dates every VAT-registered business must be aware of:

Selecting the right VAT scheme can make a meaningful difference to your cash flow and administrative burden. There are several options available, and the best choice depends on the nature and size of your business.

Standard VAT Accounting is the default scheme. You charge VAT on your sales and reclaim VAT on your purchases, accounting for the difference each quarter. This is suitable for most businesses, particularly those with significant input VAT to reclaim.

The Flat Rate Scheme simplifies VAT by allowing you to pay a fixed percentage of your gross turnover to HMRC, rather than calculating the difference between output and input VAT. This can be beneficial for businesses with low costs, although the rates vary by sector and it is important to check whether it genuinely saves you money.

Under the Cash Accounting Scheme, you only account for VAT when you actually receive payment from your customers, rather than when you issue an invoice. This is particularly helpful for businesses that experience longer payment terms or cash flow pressures.

The Annual Accounting Scheme allows you to submit just one VAT return per year instead of four, making interim payments based on an estimate of your annual VAT liability. This reduces administration and helps with budgeting. We review your circumstances carefully and recommend the most tax-efficient scheme for your situation, and we can handle the transition if you decide to switch.