# VAT services > VAT services for limited companies in Epsom and across Surrey. Registration, MTD returns filed from your Xero books and scheme advice. Free consultation. Last updated: 2026-11-09 # VAT services for limited companies in Epsom and across Surrey ## Registration, schemes and Making Tax Digital returns, filed from your Xero finances ## *Our VAT services cover the whole job, from deciding when to register to filing each return on time. We act for owner-managed limited companies in Epsom, across Surrey and online anywhere in the UK. Because we also keep your books in Xero, every VAT return starts from ledgers we already know.* You tell us what you sell and who you sell to. We choose the right scheme, set up Xero to match and file your returns through Making Tax Digital all within our internal target of two weeks of each quarter end. ### What our VAT services cover - Advice on whether you must register and the date you must register by - VAT registration with HMRC, including the right scheme from day one - VAT returns prepared in Xero and filed through Making Tax Digital for VAT - Bills reviewed for VAT as they arrive through the month, with our own bespoke systems capturing as many bills as possible - VAT compared against the previous month so unusualmovements get explained before filing - A payment reminder with the amount and the date, ahead of the HMRC deadline, and a chase for your approval where you ask us to arrange the payment - Advice on the Flat Rate, Annual Accounting and Cash Accounting schemes - Answers to general VAT questions from ourselves (either from our internal specialist team or external VAT specialists) at no extra charge to you - Replies to HMRC letters - Help to deregister when your turnover no longer needs you to be registered ### When you must register for VAT You must register when your taxable turnover for the last 12 months goes over £90,000. You must also register if you expect to go over £90,000 in the next 30 days alone. Taxable turnover includes zero-rated and reduced-rate sales, and leaves out exempt sales and anything outside the scope of VAT. Once you have gone over the limit, you have 30 days from the end of that month to register. Your registration then takes effect on the first day of the second month after you went over. Register late and HMRC can charge VAT from the date you should have registered, so tell us early if your turnover is heading towards the limit. You can register voluntarily below £90,000. That helps if your customers are VAT registered businesses, because they can reclaim the VAT you charge. It can hurt if you sell to the public, because your prices either rise or your margin falls. We talk through both sides before you decide. ### VAT rates for 2026/27 - **Standard rate, 20%:** most goods and services - **Reduced rate, 5%:** some goods and services, such as home energy - **Zero rate, 0%:** items such as most food and children's clothes - **Exempt:** items such as postage stamps, and financial and property transactions Zero-rated and exempt are different. A zero-rated seller reclaims VAT on costs but an exempt seller usually cannot. Coding this wrongly in Xero is one of the most frequent VAT mistakes we correct when getting new clients, and our bookkeeping team checks it as bills arrive. ### VAT returns and Making Tax Digital for VAT VAT returns are due one month and seven days after the end of each accounting period and payment is due the same day. The deadline applies even when it falls on a weekend. Most businesses file four returns a year, so the dates repeat each quarter. It is worth noting that the payment date can vary if you are on a Direct Debit scheme with HMRC and your frequency can vary depending on your arrangement with HMRC. Making Tax Digital for VAT means you keep digital records and file through compatible software. Your Xero file does this, so you never type figures into the HMRC website. We prepare each return from your reconciled books, review it with you, and file it. For more on the rules, read our guide to [making VAT digital for Epsom businesses](https://loveyouraccountants.com/knowledge/making-vat-digital-for-epsom-businesses). Our standard turnaround is two weeks from quarter end. For a 31 March quarter end that means your return is ready by mid-April and well ahead of the 7 May deadline. ### Choosing a VAT scheme Our VAT services start from the standard method, which works for most businesses. Three schemes suit particular situations, and the right choice depends on your costs, your customers and how you get paid. - **Flat Rate Scheme.** You pay a fixed percentage of VAT-inclusive turnover and cannot reclaim VAT on most costs. You can join with VAT turnover of £150,000 or less, excluding VAT, and you get a 1% discount in your first year. A limited cost business pays 16.5%. That applies if your spending on goods is under 2% of turnover, or under £1,000 a year. - **Annual Accounting Scheme.** You make advance payments during the year and file one return. You can join with taxable turnover of £1.35 million or less. It helps with cash planning, but refunds arrive once a year, so it suits businesses that regularly reclaim VAT less well. - **Cash Accounting Scheme.** You account for VAT when customers pay you, and reclaim it when you pay suppliers. The turnover limit is also £1.35 million. It protects cash flow if your customers pay late. We model your actual figures under each option, so the choice rests on numbers rather than a rule of thumb. If your situation changes, we review the scheme again. ### VAT automations and monthly checks that reduce risk VAT problems usually start months before the return is due. We review VAT as we process the bookkeeping so errors surface while the bill or sale is fresh. - **Bills arrive by email, in apps or as photos.** Our bespoke system captures as many bills as possible and posts them to Xero with the VAT shown on the document. - **VAT figures drift from month to month.** We compare VAT against the previous month and look into any movement. - **Bills carry mixed rates or foreign suppliers.** Bills are reviewed for VAT as we go through the month. - **A quarter is about to close.** A pre-return exception report covering uncoded, unmatched and unusual items. - **You hit a VAT question you cannot answer.** Our external VAT specialists look at it, at no charge to you. Removes: guesswork and the cost of a separate adviser. - **You sell through a platform or with different VAT treatments.** Sales brought into Xero with the right tax rate per line. - **Payment day is close.** A reminder with the amount and the HMRC deadline, plus a chase for your approval where you ask us to arrange the payment. All of the above processes we follow ensure that your VAT process is as stress-free and risk free with HMRC. ### A worked VAT example Some VAT questions need more than a rule of thumb. One UK client's overseas customer disputed the VAT on a bespoke event structure that was built, installed and removed in the UK. Our external VAT specialists reviewed it, and we advised on how the invoice should be split. ### What happens if a VAT return is late HMRC uses a points system for late returns. You earn a point for each return filed late. Once you reach four points on quarterly returns, you receive a £200 penalty, and a further £200 for each late return after that. To clear the points, you must file on time for 12 months and have no outstanding returns. Late payment is separate. Penalties build up as the unpaid VAT stays outstanding, and a daily charge starts after day 30. Interest runs at the Bank of England base rate plus 2.5% from the due date. If you are behind, we file the overdue returns and talk to HMRC about a payment plan. Missing a VAT date once does not need to become a pattern. ### How we run your VAT 1. **Free consultation.** We look at what you sell, your turnover and your current scheme. 2. **Registration or set-up.** We register you, or review your existing setup in Xero, and agree your quarter dates. 3. **Monthly review.** We compare VAT with the previous month and review bills as we go. 4. **Return preparation.** We prepare the return from your reconciled books within two weeks of quarter end. 5. **Sign-off.** We walk you through the figures and the amount due. 6. **Filing and payment.** We file through Making Tax Digital and send the payment details with the due date. ### Who our VAT services suit Most clients are owner-managed limited companies, from first-year start-ups to businesses with a few dozen staff. We also look after sole traders and landlords who are VAT registered. If your books are behind, see our [bookkeeping services](https://loveyouraccountants.com/services/bookkeeping) first, because accurate VAT depends on accurate ledgers. If you employ staff, our [payroll services](https://loveyouraccountants.com/services/payroll) sit alongside. Your VAT feeds your [annual accounts](https://loveyouraccountants.com/services/annual-accounts) and your [corporation tax](https://loveyouraccountants.com/services/corporation-tax), so the same team prepares all three. ### What our clients say "The team at LYA made the change as painless and efficient as possible." Patrick Land, Google review. "Andy and his team have kept us informed and up to date at all times." Simon Irwin, Google review. ### The people behind your VAT One senior member of the team who knows your business owns your account. Andy Mildner started the firm in 2008 and Rob Young ACA has been our Managing Director since 2023. We are a Xero Platinum Partner, CIMA registered and an ICAEW-accredited training provider. [Meet the team](https://loveyouraccountants.com/about). ### Where to find us Most VAT questions are quick to settle on a call and we are always happy to sit down with you too. Visit us at 2A The Quadrant, Epsom, Surrey KT17 4RH, call 01372 374143, or we will meet you near your premises. We prepare VAT returns for businesses in [Epsom](https://loveyouraccountants.com/locations/epsom), [Cobham](https://loveyouraccountants.com/locations/cobham), [Sutton](https://loveyouraccountants.com/locations/sutton), Leatherhead and Banstead, and further across [Surrey](https://loveyouraccountants.com/locations/surrey). #### View more services - [Outsourced finance function 01](https://loveyouraccountants.com/services/outsourced-finance-function) - [Accounting & tax compliance 02](https://loveyouraccountants.com/services/accounting-tax-compliance) - [Bookkeeping, payroll and auto-enrolment solutions 03](https://loveyouraccountants.com/services/bookkeeping-payroll-and-auto-enrolment-solutions) - [Strategic business development 04](https://loveyouraccountants.com/services/strategic-business-development) - [SEIS/EIS tax relief 05](https://loveyouraccountants.com/services/seis-eis-tax-relief) - [Tax Investigation Insurance 06](https://loveyouraccountants.com/services/tax-investigation-insurance) ## Frequently Asked Questions. ## Do you do VAT returns for businesses outside Epsom? Yes. We are based in Epsom, we meet clients across Surrey and we file VAT returns online for companies all across the UK. ## Do you handle VAT enquiries from HMRC? Yes. We read the letter with you, gather the records from Xero and reply. Our [tax investigation insurance](https://loveyouraccountants.com/services/tax-investigation-insurance) starts at £17.50 plus VAT a month. If HMRC opens an investigation, we provide our services to help resolve it without charging extra. ## Can I register for VAT below £90,000? Yes you can do this voluntarily but it helps if most customers are VAT registered businesses because they can reclaim the VAT you charge which doesn't make you more expensive. We check whether it helps you before you apply. ## Can you register me for VAT? Yes. We register you with HMRC, choose the right scheme and set up Xero to match. ## What happens if I file a VAT return late? You earn a penalty point. At four points on quarterly returns, you receive a £200 penalty, then another for each later late return. Late payment adds percentage penalties, a daily charge and interest. ## What are the VAT rates? Standard 20%, reduced 5% and zero 0%. Some supplies, such as financial and property transactions, are exempt. ## Should I use the Flat Rate Scheme? It can save time and sometimes money, but you cannot reclaim VAT on most costs. It suits businesses with few costs. We compare it against the standard method using your own figures. ## What is Making Tax Digital for VAT? You keep digital VAT records and file through compatible software, not on the HMRC website. We do this in Xero, so the return comes straight from your books. ## When are VAT returns due? One month and seven days after the end of each accounting period. Payment is due the same day, so allow time for it to clear. ## How much do VAT services cost? We charge a fixed monthly fee based on the time your work takes, and VAT sits inside that package with bookkeeping, accounts, corporation tax and the director's personal tax return. Most packages run from £250 to £500 a month. See our guide to [how much accountants cost](https://loveyouraccountants.com/knowledge/how-much-do-accountants-cost). ## When do I need to register for VAT? When your taxable turnover for the last 12 months goes over £90,000, or you expect it to pass that in the next 30 days. You then have 30 days from the end of the month you went over to register. ### You can count on us to make your accounting worries disappear in **4 easy steps** **Our onboarding process is extremely simple; the steps below can be tailored to your requirements.** ![](https://loveyouraccountants.com/images/services/step-illustration.svg) Step 1 Initial meeting We provide a free consultation to understand the pain points of your business and explore different options [Contact us](https://loveyouraccountants.com/contact) Step 2 Sign up After creating a plan, we agree an ongoing fee to implement an efficient management process to look after your personal and company finances [Contact us](https://loveyouraccountants.com/contact) Step 3 Re-work and re-engineer the processes After implementation, the initially drafted process plan is amended as needed to ensure optimum efficiency and clarity over strategy [Contact us](https://loveyouraccountants.com/contact) Step 4 Supporting you going forward Depending on your needs and size we will look to provide holistic support across the business which can include looking after your finances and coaching [Contact us](https://loveyouraccountants.com/contact) Step 1 Initial meeting We provide a free consultation to understand the pain points of your business and explore different options [Contact us](https://loveyouraccountants.com/contact) Step 2 Sign up After creating a plan, we agree an ongoing fee to implement an efficient management process to look after your personal and company finances [Contact us](https://loveyouraccountants.com/contact) Step 3 Re-work and re-engineer the processes After implementation, the initially drafted process plan is amended as needed to ensure optimum efficiency and clarity over strategy [Contact us](https://loveyouraccountants.com/contact) Step 4 Supporting you going forward Depending on your needs and size we will look to provide holistic support across the business which can include looking after your finances and coaching [Contact us](https://loveyouraccountants.com/contact)