VAT Returns
& Making Tax Digital
A business must register for VAT when its taxable turnover for the last 12 months goes over £90,000, or is expected to within the next 30 days. Registered businesses usually submit a VAT Return every quarter through Making Tax Digital-compatible software, with the return and payment due one calendar month and 7 days after the period ends. We handle VAT registration, quarterly returns and Making Tax Digital compliance.
Who this is for
- Businesses approaching or over the £90,000 VAT registration threshold
- Businesses considering voluntary registration to reclaim VAT on their costs
- VAT-registered businesses that need quarterly returns prepared and filed through MTD software
- Businesses that have picked up late-submission penalty points
How we help
- Check when registration is required and handle the VAT registration
- Prepare and submit VAT Returns through Making Tax Digital-compatible software
- Advise on the VAT rate that applies to your goods and services
- Keep your VAT records in the digital form Making Tax Digital requires
What’s included
- VAT registration, compulsory or voluntary
- Quarterly VAT Returns prepared and submitted
- Making Tax Digital-compatible digital records and filing
- Advice on the VAT rate that applies to your goods and services
Key dates and figures
Checked against GOV.UK on 24 September 2026. Rates and thresholds change, so confirm how they apply to your own circumstances before acting on them.
- Registration threshold
Taxable turnover over £90,000 in the last 12 months, or expected in the next 30 days
Source: Register for VAT- When to register
Within 30 days of the end of the month in which you went over the threshold
Source: Register for VAT- VAT rates
Standard 20%, reduced 5%, zero 0%; some supplies are exempt
Source: VAT rates- Return and payment deadline
Usually one calendar month and 7 days after the end of the VAT period
Source: Submit a VAT Return- Making Tax Digital
VAT Returns must be submitted using MTD-compatible software unless you are exempt
Source: Submit a VAT Return- Late submission
Penalty points per late return; at 4 points (quarterly filers) a £200 penalty
Source: Penalty points and penalties if you submit your VAT Return late
VAT & Making Tax Digital: Frequently Asked Questions
Plain answers to the questions we are asked most often.
You must register if your total taxable turnover for the last 12 months goes over £90,000, or if you expect it to go over £90,000 in the next 30 days.
Where you have already gone over the threshold, you must register within 30 days of the end of the month in which it happened. Your effective date of registration is the first day of the second month after you went over.
Yes. You can choose to register if your turnover is below £90,000, for example to reclaim VAT on business expenses. Whether it makes sense depends on who your customers are: VAT-registered businesses can usually reclaim the VAT you charge, while consumers cannot.
Making Tax Digital requires VAT-registered businesses to keep digital records and submit their VAT Returns using compatible software, rather than typing figures into HMRC online. Returns can only be sent another way if the business has an exemption.
Most businesses submit a VAT Return every three months. The deadline for submitting online is usually one calendar month and 7 days after the end of the period, and the same date is the deadline for the payment to reach HMRC, even if it falls on a weekend or bank holiday.
Late submission penalties use a points system. Each late return earns a penalty point until you reach the threshold for your filing frequency: 2 points for annual returns, 4 for quarterly and 5 for monthly.
Once you reach the threshold you receive a £200 penalty, and a further £200 penalty for each later return submitted late while you remain at the threshold.
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