You’ll usually need to calculate VAT and file a return every three months, but your VAT duties don’t end there. You’ll need to work out how much to charge on your sales, record absolutely everything during the VAT period, and ensure all calculations are accurate. This isn’t always doable for time-poor business owners.
That’s why many growing businesses choose to outsource to VAT specialist accountants. We do exactly that here at Daniel Wolfson & Co. Contact us today for reliable VAT accounting services.
Welcome to Daniel Wolfson & Co: VAT Specialist Accountants
As part of the award-winning DNS accounting group, Daniel Wolfson & Co offers near-unlimited capacity in terms of people power, expertise, technology, and resources to manage virtually every business, finance, or accounting-related task.
We focus on nurturing client relationships from the start—this is the very basis of our holistic, proactive service model. We want every business to succeed: it’s beneficial for us, excellent for you, and fantastic for the UK economy.
At Daniel Wolfson & Co, we offer holistic business advisory and accounting services. We are also expert VAT accountants. When our clients realise VAT is too complex and time-consuming to manage in-house, we are always here to help. Our VAT team covers every aspect, from registration to ongoing VAT accountancy services, keeping your business compliant and you at ease.
If you’re a VAT-weary business owner looking for someone to take the pressure off your shoulders, look no further. Contact Daniel Wolfson & Co today to discover how our VAT accountancy services can give you back your valuable time.
What is VAT?
Value Added Tax (VAT) is a tax added to most goods and services that VAT-registered businesses sell. Not all businesses need to register for VAT. Some voluntarily register to reclaim VAT, while others must register because their taxable turnover exceeds the VAT threshold.
Current UK VAT rates (2025):
- Standard rate: 20% (most goods and services)
- Reduced rate: 5% (e.g. domestic energy, children’s car seats)
- Zero rate: 0% (e.g. children’s clothes, most foodstuffs)
How do I know if I need to be VAT registered?
The current threshold for mandatory VAT registration is £90,000 in taxable turnover over a rolling 12-month period (2025). If your business exceeds this threshold, or you expect it to in the next 30 days, you must register for VAT and start charging it on your products and services.
Note: The deregistration threshold is now £88,000. If your taxable turnover falls below this, you may apply to deregister for VAT
Registration is also mandatory if:
- You are based outside the UK and supply goods or services in the UK.
- You expect to supply goods or services in the UK within the next 30 days.
If you don’t need to register yet, it’s still important to keep an eye on the latest HMRC VAT guidelines, as they can change.
Our qualified and experienced VAT returns accountants will keep you updated so you’ll be among the first to know if your VAT obligations change. We’ll make sure your business is ready for VAT registration and keep you compliant by finding the best VAT scheme and strategy.
What VAT Schemes are Available?
HMRC offers several VAT schemes to simplify the process. Our VAT specialist accountants can help you choose the best fit for your business.
| Scheme | Who is it for? | Key Features |
|---|---|---|
| Standard VAT Accounting | All VAT-registered businesses | Submit VAT returns quarterly, reclaim VAT on purchases |
| Flat Rate VAT Scheme | Businesses with turnover < £150,000 | Pay a fixed % of turnover, simplified admin, cannot reclaim VAT on purchases |
| Annual Accounting Scheme | Turnover < £1.35 million | One VAT return per year, advance payments |
| Cash Accounting Scheme | Turnover < £1.35 million | Pay VAT on payments received, not invoices issued |
| Margin Scheme | Retail/second-hand goods businesses | VAT due on value added, not total sale price |
Our VAT Accounting Services
At Daniel Wolfson & Co, we’re passionate about helping our clients stay on top of their finances while ensuring 100% compliance. Our flexible VAT services are fully adapted to your specific needs.
Our VAT accountancy services include:
- Advice on whether to register for VAT
- Identifying the best VAT scheme for your business
- VAT registration and deregistration with HMRC
- Advice on suppliers’ VAT liability
- Preparing, reviewing, and submitting your VAT returns
- Partial exemption calculations
- Making Tax Digital (MTD) compliance, with free cloud-based software
- Communicating with HMRC and assisting with compliance inspections
- Specialist VAT advice (international transactions, reverse charges, property, not-for-profit, and more)
How to Calculate Your VAT Liability?
Your VAT liability is the difference between VAT charged on sales and VAT paid on purchases. If you’ve charged more VAT than you’ve paid, you owe the difference to HMRC. If you’ve paid more than you’ve charged, you are due a VAT repayment.
Deciding whether to register for VAT voluntarily, choosing the right scheme, and keeping pace with quarterly returns can be stressful. With Daniel Wolfson & Co by your side, you don’t have to face VAT alone.
VAT Returns Accountants: Ensuring Accuracy and Compliance
Once registered, you are legally obliged to complete regular VAT returns and pay VAT to HMRC. Returns must be completed online and paid electronically by your VAT payment date.
We take great care in calculating and filing VAT returns, ensuring you don’t pay more than necessary and get back any VAT owed. By keeping your VAT returns accurate and on time, we help you avoid the stress of late payment penalties and HMRC investigations.
Looking for VAT Accountants? Contact Daniel Wolfson & Co
Don’t let VAT compliance distract you from running your business. Whether you’re approaching the VAT threshold or VAT is becoming too much to handle, our experienced VAT accountants will gladly take over.
Our holistic approach covers every question and concern, helping you pay and claim VAT, submit VAT returns online, stay informed of regulatory changes, and support you during any VAT challenges.
Frequently Asked Questions about VAT Accounting Services
Can you guide me through the VAT registration process?
Yes. Our VAT accountants will advise you on the various VAT schemes, help you find the best one for your business, explain your VAT obligations, and guide you step-by-step through the registration process.
What triggers an HMRC VAT investigation?
Late payments or inaccurate VAT returns can trigger an investigation and penalties. HMRC typically investigates when they identify specific risks or suspect incorrect VAT returns.
What is input and output VAT?
Input VAT is the VAT paid on business purchases. Output VAT is the VAT charged on sales. If your input VAT exceeds your output VAT, you can reclaim the difference from HMRC.
How often must I submit VAT returns?
Most businesses submit VAT returns quarterly, but some schemes allow annual returns.
What is the current VAT registration threshold?
The VAT registration threshold for 2025 is £90,000 in taxable turnover over a rolling 12-month period.
Can I voluntarily register for VAT below the threshold?
Yes. Voluntary registration may benefit businesses that sell primarily to other VAT-registered businesses or expect to exceed the threshold soon.
What are the penalties for late or incorrect VAT returns?
Late registration or incorrect returns can result in penalties and interest charges. It’s essential to stay compliant to avoid financial liabilities.
Which VAT scheme is best for my business?
The best VAT scheme depends on your turnover, business type, and cash flow. Our VAT specialist accountants will assess your situation and recommend the optimal scheme.
How does Making Tax Digital (MTD) affect VAT returns?
All VAT-registered businesses must keep digital records and file VAT returns using MTD-compatible software. For expert VAT accounting services, tailored advice, and stress-free compliance, contact Daniel Wolfson & Co—your trusted VAT accountants in the UK.
