If you run a business in the UK, there’s a good chance you’ll need to deal with VAT (Value Added Tax). For many small business owners, VAT returns can feel complex and time-consuming — but getting it wrong can mean costly penalties.

At Modus Accountants, we work with hundreds of businesses every year to ensure their VAT is filed accurately and on time. Here’s a simple guide to help you understand the essentials.

1. Who Needs to File a VAT Return?

You must register for VAT if your business:

Has a taxable turnover above £90,000 (as of 2025).

Chooses to register voluntarily to reclaim VAT on expenses.

Once registered, you’ll need to submit VAT returns — usually every quarter — even if you have no VAT to pay or reclaim.

2. What’s Included in a VAT Return?

A VAT return shows:

The VAT charged on sales (output tax).

The VAT paid on purchases (input tax).

The difference — the amount you either pay HMRC or reclaim.

3. Common VAT Mistakes

Missing deadlines – Late submissions can lead to penalties and interest.

Incorrect VAT rates – Especially on reduced or zero-rated items.

Poor record keeping – Missing invoices or receipts make returns inaccurate.

Not using Making Tax Digital (MTD) software – Since April 2022, all VAT-registered businesses must use MTD-compliant software.

4. How Modus Can Help

Our VAT specialists make the process straightforward by:

Ensuring your records comply with Making Tax Digital.

Checking you reclaim all eligible input VAT.

Submitting returns on time — every time.

Advising on VAT schemes (Flat Rate, Cash Accounting, etc.) that may save money.

5. Local VAT Support in Oxfordshire

We’re proud to support businesses across Oxfordshire — from Witney and Carterton to Bicester and Oxford. Whether you’re just registering for VAT or already filing returns, our team is here to help.

Next Steps

VAT doesn’t need to be a headache. With the right advice and systems in place, it becomes just another part of running your business smoothly.

📞 Call us today on 01993 225030 or 📧 email hello@modus-accountants.co.uk to book your free VAT support consultation.