Your small business must register for VAT if your taxable turnover exceeds the established threshold. If your turnover is below this threshold, you can still register voluntarily. Businesses not registered for VAT cannot reclaim VAT paid, so registering may be beneficial if you believe it will help your business. While not registering avoids paperwork, voluntarily registering may be advantageous if you pay significant VAT on purchases.

Choosing the Right VAT Scheme

There are different VAT schemes available, and we will select the right one for your business. This choice will simplify your VAT accounting and returns, potentially improving your cash flow. Our expert Small Business Accountants take the time to understand your business, ensuring you benefit from the best VAT scheme for your company.

VAT-Registered Business Obligations
VAT-registered businesses must maintain proper VAT records, issue VAT invoices, and complete VAT returns, typically on a quarterly basis. You must also pay any VAT due to HMRC. Record-keeping and VAT returns can be time-consuming and complex for small business owners.

How We Help with VAT Compliance

Our Small Business Accountant team in East London will manage these tasks for you, ensuring your records are up-to-date and compliant with legislation. While we handle your accounts, you can focus on running your business with peace of mind, knowing you’re optimizing your tax position.

HMRC Investigations: What You Need to Know

Even with proper tax compliance, your small business may face tax investigations or inspections. For example, VAT-registered businesses may undergo routine tax inspections every few years, where HMRC checks records and tax compliance systems.

Why HMRC Might Investigate Your Business

HMRC may target businesses for various reasons, even if they are compliant. A decline in turnover, an unexpected gross profit increase, or discrepancies on your return may prompt them to investigate. In most cases, there is nothing wrong, but HMRC will still seek clarification.

Preventing Issues with Proper Record-Keeping

Maintaining accurate records and submitting timely tax returns will help prevent further issues. Our Small Business Accountant team keeps your records up-to-date and compliant, so you can focus on your day-to-day operations without worry.

Support During Investigations

If you face an investigation, we are here to support and guide you through the process with our experienced team based in East London. We’ll ensure you have everything in place to handle any inquiry efficiently.

The Impact of HMRC Investigations

Each year, HMRC conducts thousands of tax investigations, covering areas like Tax, Corporation Tax, PAYE, and VAT. These investigations may be routine inquiries, audits, or compliance checks. Regardless of the type, any investigation can be disruptive and financially damaging. It can also harm your relationships with customers, suppliers, and other stakeholders.

Expert Assistance for Tax Inquiries

Our Small Business Accountants offer expert assistance at every stage of a tax inquiry. We provide the support and advice needed to handle investigations discreetly, professionally, and as quickly as possible. This ensures that you can continue focusing on your business affairs.