As a small business owner, managing your finances effectively is crucial—and that includes understanding and complying with Value Added Tax (VAT) regulations. While VAT might seem like a complex or burdensome requirement, staying informed can help you avoid costly penalties and even improve your cash flow.

At Harvin Tax Accountants, we’ve helped hundreds of small businesses across the UK manage their VAT obligations with confidence. Here’s a simple guide to what VAT means for your business—and how we can help.

What is VAT?

VAT (Value Added Tax) is a government-imposed tax on the sale of goods and services in the UK. Most businesses with a turnover above a certain threshold are required to register for VAT and submit regular returns to HMRC.

As of 2025, the VAT registration threshold is £90,000 in taxable turnover over a 12-month period. If your business crosses this threshold—or is likely to—you must register for VAT.

When Should a Small Business Register for VAT?

You are required to register for VAT if:

• Your annual taxable turnover exceeds £90,000
• You expect to go over the threshold in the next 30 days
• You voluntarily choose to register (this can be beneficial in some cases)

Voluntary registration may help your business recover VAT on expenses, increase credibility, or prepare for future growth.

Your Responsibilities After Registration

Once you’re registered for VAT, you must:

• Charge VAT on your goods/services
• Submit VAT returns (usually quarterly)
• Keep digital records (under Making Tax Digital rules)
• Pay VAT to HMRC on time

Failing to do any of the above can result in penalties and interest charges.

Common VAT Schemes for Small Businesses

To reduce the admin burden, HMRC offers several VAT schemes tailored to small businesses:

1. Flat Rate Scheme – Pay a fixed percentage of your turnover, simplifying your VAT returns.
2. Cash Accounting Scheme – Pay VAT only when you receive payments (instead of when you invoice).
3. Annual Accounting Scheme – Submit one VAT return per year, with advance payments throughout the year.

We help you choose the best VAT scheme based on your business model, industry, and cash flow needs.

How Harvin Tax Accountants Supports You

Our VAT services are designed to take the stress out of compliance. Here’s what we provide:

• VAT registration and setup
• Quarterly or annual VAT return preparation and submission
• Ensuring MTD (Making Tax Digital) compliance
• Advising on the right VAT scheme
• Handling HMRC correspondence on your behalf

We make sure your returns are submitted accurately and on time, so you can avoid penalties and focus on growing your business.

Need Help with VAT? Let’s Talk.

Whether you’re just hitting the threshold or want to explore the benefits of VAT registration, we’re here to help. At Harvin Tax Accountants, we offer clear, honest, and strategic advice for small businesses just like yours.

📞 Book a free VAT consultation today to ensure your business is fully compliant and tax-efficient.