💡 Keeping on Top of Your VAT for HMRC: Expert Advice from JSB Accountants
If you’re a business owner in the UK, staying on top of your VAT returns is essential. Missing deadlines or making errors can lead to penalties from HMRC, disrupt cash flow, and add unnecessary stress to your workload.
At JSB Accountants, we help sole traders, limited companies, and growing businesses take control of their VAT, ensuring every submission is accurate, compliant, and on time. Here’s how to keep your VAT in order and stay on HMRC’s good side.
1. Understand Your VAT Responsibilities
VAT (Value Added Tax) applies to most goods and services sold in the UK. If your taxable turnover exceeds the HMRC VAT registration threshold, you must register for VAT. Even if you’re below the limit, voluntary registration can often benefit your business.
Once registered, you’re responsible for:
Charging VAT on sales (output tax)
Paying VAT on purchases (input tax)
Submitting quarterly VAT returns to HMRC
Not sure whether you need to register? JSB Accountants can assess your business and handle VAT registration on your behalf, ensuring everything is done correctly from day one.
2. Keep Accurate VAT Records
Good bookkeeping is the foundation of smooth VAT management. HMRC requires you to keep VAT records for at least six years, including:
Sales and purchase invoices
Credit and debit notes
Receipts and till rolls
A VAT account summary
Cloud accounting software like Xero, QuickBooks, or Sage makes this process much easier, and JSB Accountants can set up and manage your VAT records digitally, ensuring full compliance with Making Tax Digital (MTD) requirements.
3. Stay Compliant with Making Tax Digital (MTD)
Making Tax Digital for VAT is now mandatory for most VAT-registered businesses. Under MTD, you must:
Keep digital VAT records
Submit VAT returns via HMRC-approved software
Our team at JSB Accountants can help you transition smoothly to MTD-compliant systems, reduce manual entry errors, and keep your VAT submissions consistent and accurate.
4. Review Your Finances Regularly
Instead of waiting until your VAT return is due, schedule regular check-ins — ideally weekly or monthly. Use this time to:
Match invoices to payments
Reconcile your bank statements
Check VAT codes and rates
Identify any missing or duplicated transactions
If time is tight, JSB Accountants can manage your VAT bookkeeping for you, so you never miss an entry or a deadline.
5. Apply the Correct VAT Rates
Not all sales attract VAT at the standard 20%. Some goods and services are zero-rated, reduced-rated (5%), or exempt. Misclassifying VAT rates is a common mistake that can lead to overpayments or under-declarations.
JSB Accountants can help you identify the correct VAT treatment for your industry, from retail and hospitality to construction and professional services, keeping your business compliant and efficient.
6. Submit VAT Returns on Time
VAT returns are usually submitted every three months, and payments must reach HMRC by the deadline. Missing this deadline can lead to fines and interest charges.
To stay compliant, set up reminders or, better yet, let JSB Accountants handle your VAT submissions. We’ll prepare, review, and submit your returns accurately and on time, so you can focus on running your business.
7. Get Professional VAT Support
VAT can be complex, especially for businesses dealing with international trade, imports/exports, or partial exemptions. Working with professionals ensures you stay compliant while also identifying potential VAT savings and reclaim opportunities.
At JSB Accountants, we offer:
VAT registration and deregistration support
MTD setup and management
Quarterly VAT return preparation and submission
HMRC compliance checks and support
Expert advice tailored to your sector
✅ Final Thoughts
Keeping on top of your VAT doesn’t have to be stressful. With the right tools, good habits, and expert support from JSB Accountants, you can stay compliant with HMRC, avoid penalties, and focus on growing your business.
👉 Need help managing your VAT returns or Making Tax Digital setup?
Contact JSB Accountants today for friendly, professional VAT accounting services that keep your business one step ahead.
As a family-run company, we pride ourselves on providing a bespoke service tailored to your particular needs.
Above all, our objective is to save you time, money and effort in managing your accounts, leaving you free to focus on building your business.
Remember, you’re not alone, we’re always here to help if you have an accounts problem or query.
This content will only be shown when viewing the full post. Click on this text to edit it.
Share this post: