RES Accounting & Research


VAT Registration

Only businesses can be registered for VAT; individual consumers can't.A business must be VAT registered if turnover exceeds the threshold (from 1 April 2015 £73,000 per annum sales) and can be registered voluntarily (i.e. if it would be better off doing so).

How to file your VAT return


You can file your VAT return through HMRC's own website, or can use an online accounting service like RES Accountant  which will help you fill in your VAT return, then allow you to submit it directly to HMRC for you.


What VAT schemes are available?
The most common schemes for small businesses are:

  1. Flat rate scheme – can save money and simplify VAT; applicable for turnover up to £150,000;  must be applied for and agreed by HMRC before being used.
  2. Cash Accounting – can delay payment of VAT to HMRC to match receipts from customers and payments to suppliers; applicable up to £1,350,000; can increase accounting complexity.
  3. Retail schemes – can simplify the record keeping for retailers.  Various schemes available.
  4. Partial exemption.  This is not really a scheme but a VAT status.  This occurs if some of a business’s income is exempt from VAT (such as certain rents).  Calculations are then needed to establish if some or all VAT on costs is blocked from being reclaimed.

Quick step guide

  1. Register with the Government Gateway
  2. Enrol for the New VAT returns online service
  3. Appoint RES Accounts  as your agent (to give us permission to submit returns on your behalf)
  4. Set up a Direct Debit to pay HMRC, and an e-mail address for notifications