STYLES & ASSOCIATES
ACCOUNTANCY SERVICES
Serving businesses in Alton, and throughout Hampshire
VAT Returns Services for Businesses in Alton and Hampshire.
Styles & Associates is an Alton-based accountancy firm that prepares, checks and submits VAT returns for businesses across Hampshire, Surrey and West Sussex. We keep your records Making Tax Digital (MTD) compliant, file every return before the HMRC deadline, and tell you what you owe before it's due.
What is VAT?
A VAT return is a report you send to HMRC, usually every three months, showing the VAT you charged customers (output VAT) and the VAT you paid on business purchases (input VAT). The difference is what you pay to HMRC. If your input VAT is higher, HMRC refunds you the balance.
How do you calculate VAT owed?
VAT is calculated by taking the amount of VAT due on sales, minus the amount of VAT you can reclaim on purchases over a 3 month accounting period – the difference is the amount you pay. If the amount you reclaim is more than the amount due HMRC will issue a VAT refund of the balance.
VAT payable = output VAT on sales - input VAT you can reclaim on purchases.
Example: you charge £12,000 of VAT on sales and can reclaim £4,500 on purchases.
You pay HMRC £7,500.
Try our VAT calculator to add or remove VAT from a figure.
Who should submit a VAT Return?
UK law requires companies with a turnover above the VAT threshold to register and charge VAT on taxable goods or services at the appropriate rate. UK VAT registered businesses charge VAT for taxable goods or services and then submits a VAT return to HMRC, the government’s tax-collecting authority.
When are VAT returns due?
Most businesses file quarterly. The return and payment must reach HMRC one calendar month and seven days after the end of the VAT period. For example, a period ending 30 June is due by 7 August. Pay by Direct Debit, and set it up at least seven days before the deadline. If you use the Annual Accounting Scheme you file once a year and pay in instalments.
What is Making Tax Digital for VAT?
Since April 2022 every VAT-registered business, whatever its turnover, must keep VAT records digitally and file returns through MTD-compatible software. Spreadsheets alone are not enough unless they're linked to software that submits to HMRC. We work in Xero, as a Xero partner, we can move you onto compatible software and file on your behalf. We can also work with QuickBooks, Sage and Dext.
Separate from VAT: MTD for Income Tax began on 6 April 2026 for sole traders and landlords with qualifying income over £50,000, dropping to £30,000 in April 2027 and £20,000 in April 2028. If that's you, we can handle both. See our Self Assessment service.
What VAT can you reclaim?
You can reclaim VAT on goods and services bought for business use: equipment, software, stock, professional fees, uniforms, and business travel costs, provided you hold a valid VAT invoice. Some items are restricted, including business entertainment and most private-use costs. Before registration, you can usually reclaim VAT on goods bought up to 4 years earlier (still held or used) and services up to 6 months earlier. You cannot reclaim VAT if you're not VAT-registered.
What VAT records must you keep?
Keep VAT records, including sales and purchase invoices and your VAT account, for 6 years. Under MTD these must be digital. We provide [Xero / Dext: confirm current tools] so receipts are captured from your phone and stored for you.
What are the penalties for late VAT returns and payments?
HMRC uses two separate systems.
Late filing (points-based): each late return earns one penalty point. When you reach your threshold, a £200 penalty applies to that and every further late return.
HMRC also charges late payment interest from the first day overdue. The rate is the Bank of England base rate plus 4%. Struggling to pay? Contact HMRC before day 15 to agree a Time to Pay arrangement, which can reduce or remove penalties. Always file on time even if you can't pay, because the two penalties are separate.
Source: HMRC late payment penalty guidance. In HMRC's own example, £15,000 of VAT paid 51 days late incurs £986.30 in penalties, before interest.
Frequently Asked Questions
How much does a VAT return cost?
Cost depends on your transaction volume and how tidy your records are.
What is the VAT threshold in 2026?
£90,000 of taxable turnover in any rolling 12 months. The deregistration threshold is £88,000.
Can I do my own VAT return?
Yes, but you must use MTD-compatible software. Many owners hand it over to avoid coding errors, penalty points and missed deadlines.
What happens if I submit my VAT return late?
You earn a penalty point. At four points (quarterly filers) you pay £200, and £200 for each later late return. Pay late and separate percentage penalties and interest apply.
Can I reclaim VAT on things I bought before I registered?
Often yes: goods up to 4 years before registration and services up to 6 months before, if used for the business and you hold the invoices.
Do I need to register for VAT if I'm below the threshold?
No, but you can choose to. We'll show you the numbers.
Do you work with businesses outside Alton?
Yes. We work with businesses across Hampshire, Surrey and West Sussex, including Farnham, Guildford, Basingstoke, Winchester, Petersfield and Portsmouth, and we work remotely with clients anywhere in the UK.
This page is general guidance, not personal tax advice. Figures are correct at the date shown above.
How Styles & Associates handles your VAT
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Free consultation: we review your turnover, customers and costs and confirm whether you need to register.
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Registration: we register you with HMRC as your agent.
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Set-up: we get you on MTD-compatible software and clean up your records.
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Quarterly preparation: we reconcile your books and prepare the return.
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Your approval: we send you the figure and payment date before we file.
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Submission and reminders: we file and confirm the payment amount and date to you.
