Value Added Tax (VAT)

Value Added Tax (VAT) is one of the most complex and fast-moving parts of the UK tax system.

From VAT registration and the right accounting scheme to cross-border rules and digital record-keeping, it’s easy to overpay, underpay, or fall foul of HMRC’s requirements. Our dedicated VAT specialists help you stay compliant and confident – so you only pay what you owe and no more.

VAT for business – how can we help?

We provide practical, cost-effective support across the VAT lifecycle:

• VAT registrations & deregistrations
  End-to-end support when you pass (or are approaching) the compulsory registration threshold, and advice on voluntary registration or deregistration.

• VAT planning & administration
  Day-to-day guidance on the correct treatment of your sales and purchases and the right VAT scheme for your business.

• Choosing the right VAT scheme
  Clear comparisons and onboarding for Flat Rate, Cash Accounting, and Annual Accounting schemes, so you optimise cashflow and admin effort, plus Margin Schemes.

• MTD-compatible bookkeeping & VAT return support
  Controls, reconciliations and timely returns using HMRC-compatible software, with digital record-keeping guidance to avoid penalties.

• VAT control, reconciliations & health checks
  Periodic reviews to catch errors early and reduce risk.

• Dispute resolution & representation
  Verification of points of VAT legislation and negotiation with HMRC on your behalf on any disputes that may arise.

Specialist areas we’re often asked about:
Capital Goods Scheme adjustments, partial exemption, property & the option to tax, and margin schemes.

 What businesses need to know:

• Current VAT thresholds (2025/26):
  Register if taxable turnover exceeds £90,000 in any rolling 12-month period (or will in the next 30 days). Deregistration is possible below £88,000.

• VAT rates at a glance:
  Standard 20%, Reduced 5%, and Zero-rated 0% items; some supplies are exempt or outside scope (which affects your ability to reclaim input VAT).

• Making Tax Digital (MTD):
  All VAT-registered businesses must keep digital VAT records and submit returns using MTD-compatible software.

 Why clients choose Lambert Chapman:

• Straight answers to complex questions – We translate rules into practical steps your team can follow, with clear workflows for invoicing, record-keeping and returns.

• Proactive risk reduction – Regular reconciliations and review of tricky areas (partial exemption, land & property, cross-border) keep you compliant.

• Sector-aware advice – From construction and professional services to e-commerce and healthcare, we tailor VAT treatment to your operations.

Typical VAT engagements:

• New registration with scheme selection and MTD setup

• Quarterly (or monthly) return preparation and review

• Capital Goods Scheme monitoring and adjustments

• Partial exemption calculations and annual adjustments

• Property transactions and option-to-tax guidance

• HMRC enquiries and penalties

Value Added Tax (VAT) for businesses – frequently asked questions:

When do I have to register for VAT?
When your taxable turnover exceeds £90,000 in any rolling 12-month period, or you expect to exceed it in the next 30 days. If you’re below the threshold, voluntary registration can still be beneficial, especially if your customers are VAT-registered or you’re often in a repayment position.

What VAT rate applies to my products/services?
Most supplies are at 20%. Some qualify for 5% (e.g. certain energy-saving materials), some are zero-rated (e.g. most children’s clothing, books), and some are exempt (e.g. many financial services). Correct categorisation is essential for accurate VAT and input-VAT recovery.

Do I need MTD if I’m voluntarily registered?
Yes. All VAT-registered businesses – compulsory and voluntary – must keep digital records and file via MTD-compatible software.

Which VAT accounting scheme should I use?
That depends on turnover, margins, and admin preferences. We’ll compare Flat Rate, Cash Accounting, and Annual Accounting for you and model the cashflow/administration impact before you choose.

➡️ Get tailored VAT advice today:

Call 01376 326266 or email info@lambert-chapman.co.uk to arrange a discovery call, or use our contact form and somebody will get back to you.