VAT Returns & MTD for VAT
VAT is one of the areas where small errors can quickly become expensive. Verdi Bookkeeping prepares and files VAT Returns for businesses across London, making sure your records are accurate, your returns are submitted through Making Tax Digital (MTD) compatible software and you know exactly what is due and when.
Since April 2022 every VAT-registered business has had to follow Making Tax Digital for VAT, keeping digital records and submitting returns through compatible software. We handle the practical side for you, working from your day-to-day books so your VAT figures match your accounts. You will have a named bookkeeper who understands your business and the VAT treatment of your sales and costs.
What's included
- Checking whether and when you need to register for VAT
- Help with the VAT registration process, working with your accountant where needed
- Keeping digital VAT records that meet MTD requirements
- Coding sales and purchases correctly at standard, reduced, zero or exempt rates
- Reconciling your VAT control account to your books
- Preparing quarterly, monthly or annual VAT Returns
- Submitting returns to HMRC through MTD-compatible software
- Reminders of filing and payment deadlines
- Practical support with the Flat Rate, Cash Accounting and Annual Accounting schemes
- Correcting minor errors from earlier periods where appropriate
- Clear VAT working papers for your accountant at the year end
VAT essentials for 2026/27
| Item | Current position |
|---|---|
| Registration threshold | £90,000 taxable turnover in a rolling 12-month period |
| Deregistration threshold | £88,000 |
| VAT rates | Standard 20%, reduced 5%, zero 0% |
| Return and payment deadline | 1 calendar month and 7 days after the end of the VAT period |
| Cash and Annual Accounting schemes | Available for taxable turnover up to £1.35 million |
| Late returns | Penalty points regime, in place since January 2023 |
Rates, thresholds and scheme rules change, so always check GOV.UK or speak to us or your accountant before making decisions. If you are approaching the threshold, our VAT registration guide explains what to look out for.
Who it's for
Our VAT service suits any VAT-registered business, or one about to register, that wants returns handled accurately. We regularly work with:
- Small limited companies and partnerships across London
- Entertainment and voice agencies dealing with commission and artists' fees
- TV production and publishing companies with UK and overseas transactions
- Solicitors and barristers who charge VAT on fees and disbursements
- Self-employed people who have crossed, or are nearing, the registration threshold
Where your VAT position raises technical questions, such as partial exemption or complex cross-border supplies, we will work with your accountant or tax adviser to make sure the returns reflect their advice.
How it works
- Free initial chat. We discuss your business, your current VAT position and any scheme you use.
- Gather records. We collect your sales and purchase invoices, bank statements, previous returns and software access.
- Set up for MTD. We confirm your records and software are MTD-compatible, and make sure the correct VAT codes are in place.
- Prepare and file each return. We reconcile the period, prepare the return, send it to you for approval and submit it to HMRC, telling you what to pay and by when.
- Handover to your accountant. At the year end we provide VAT reconciliations and schedules for your accountant.
Why choose Verdi Bookkeeping
Returns match your books
We prepare VAT from reconciled bookkeeping, so your returns agree with your accounts.
MTD handled
We make sure your records and submissions meet Making Tax Digital requirements.
Your own bookkeeper
A named member of our team looks after your VAT and is always the person you speak to.
Working with your accountant
We handle the routine returns and involve your accountant or adviser on technical questions.
Related services
VAT Returns go hand in hand with regular bookkeeping. If you are moving from spreadsheets to MTD-compatible software, see our cloud accounting setup and training. We can also run your payroll and prepare accounts to Trial Balance. VAT records must generally be kept for six years.
Frequently asked questions
Do I have to use MTD software for VAT?
Yes. All VAT-registered businesses must keep digital records and file returns through MTD-compatible software, unless HMRC has granted an exemption.
Can I register voluntarily below the threshold?
Voluntary registration is possible and can make sense for some businesses, for example where most customers are VAT-registered. We can talk it through with you and your accountant.
Which VAT scheme is best for me?
It depends on your turnover, costs and customers. We can explain how the Flat Rate, Cash Accounting and Annual Accounting schemes work in practice, and your accountant can confirm the right choice.
What happens if a return is late?
HMRC's points-based regime adds a penalty point for each late return, with a financial penalty once the threshold is reached. Late payment also attracts penalties and interest, so we keep you well informed of every deadline.
Take the stress out of VAT
Talk to our Camden team about accurate, on-time VAT Returns for your business.
Book a free consultation Call 020 7482 4641Other services: Bookkeeping Services · Payroll & PAYE · Accounts to Trial Balance · Self Assessment & MTD Income Tax Support · Cloud Accounting Setup & Training