VAT

VAT is a complex tax which businesses have to deal with as they grow. It's not surprising that many businesses over or underpay without realising it. VAT applies to transactions where there is a supply of goods or services made in the UK by a taxable person in the course of business — and once your taxable turnover exceeds the current registration threshold of £90,000 in any rolling 12-month period, registration becomes compulsory. Get it wrong and HMRC can charge penalties of up to 15% of the VAT owed on top of backdated tax, so it pays to keep on top of it.

The wide scope of VAT, the constant changes to the regulations, and HMRC's Making Tax Digital requirements mean that choosing the right scheme and looking after our Derby clients' VAT affairs is an important part of the overall service we provide.

We offer a comprehensive VAT service including:

• assessing the advantages and disadvantages of being VAT registered, including whether voluntary registration below the £90,000 threshold could benefit you
• deciding on the most appropriate scheme (standard, cash accounting, flat rate, or annual accounting)
• registering businesses for VAT, including monitoring your rolling 12-month turnover so you never miss the 30-day registration deadline
• Making Tax Digital compliant record-keeping and quarterly return submissions
• support if you've registered late or received a penalty notice from HMRC

Page last reviewed: July 2026 — VAT registration threshold correct as of the 2026/27 tax year.

VAT Pages ► VAT Summary ■ VAT Rates & Limits ■ VAT Cash Accounting ■ VAT Flat Rate Scheme ■

■ VAT Annual Accounting Scheme ■ VAT Bad Debt Relief ■ VAT Small business pointers ■

 ■ VAT Making Tax Digital ■  Limited Cost Traders & VAT Flat Rate Scheme  ■

Registered office: 61 Friar Gate, Derby, Derbyshire, DE1 1DJ   T: 01332 202660

Adrian Mooy & Co is the trading name of Adrian Mooy & Co Ltd.  Registered in England No. 05770414