Tax prep support
VAT return preparation support (Making Tax Digital)
Finbryn prepares quarterly VAT returns under Making Tax Digital from your digitally linked Xero or QuickBooks records, reviewing scheme choice and partial exemption once your taxable turnover passes the £90,000 registration threshold, ready for a registered agent to file with HMRC.
Tax working papers
Illustrative client · August 2026
GBP
- Year-end books closed and reconciledDone
- Fixed asset and depreciation scheduleDone
- Book-to-tax adjustments listedDone
- Supporting schedules for the preparerIn progress
- Handed to the signer for review and filingNext
Illustrative. An example of the document, not a client's figures.
Registration starts at £90,000
The VAT registration threshold has stood at £90,000 of taxable turnover in the previous 12 months, or expected in the next 30 days, since April 2024. We monitor turnover against that figure through your monthly close so registration happens on time rather than being discovered after the fact.
Scheme choice, reviewed rather than defaulted
Standard VAT accounting, the flat rate scheme and cash accounting each suit a different kind of business, and the right choice depends on turnover, margin and how quickly customers pay. We review scheme fit at onboarding and again whenever the business changes shape, instead of leaving a company on whichever scheme it first registered under.
What Making Tax Digital actually requires
MTD requires digital records linked end to end into the software that submits the return, with no manual re-typing of the final VAT figures between systems. We check that the digital link is genuinely unbroken across Xero, QuickBooks Online, Sage or Dext, since a broken link is one of the more common reasons a return gets queried.
Partial exemption and the reverse charge
Businesses with both taxable and exempt supplies need a partial exemption calculation to work out how much input VAT they can reclaim, and certain services, particularly in construction and cross-border supply, fall under the domestic reverse charge instead of standard VAT treatment. We flag both situations during preparation rather than applying a standard calculation that misses them.
Who submits the return
We prepare the quarterly workpapers and draft return from your reconciled books. A registered agent holding an Agent Services Account, supervised under the UK's money laundering regulations, reviews and submits it through Making Tax Digital.
Where this fits
This pairs with Making Tax Digital for Income Tax support for sole traders and landlords, and with monthly bookkeeping so the digital link stays intact between periods. See pricing for VAT preparation rates.
Questions
Frequently asked questions: VAT return preparation support (Making Tax Digital)
When do we need to register for VAT?
Once taxable turnover passes £90,000 in the previous 12 months, or is expected to in the next 30 days, registration is required.
Does the domestic reverse charge affect our VAT return?
Where it applies, usually in construction or cross-border supply, we flag it during preparation so the return is not calculated under standard VAT treatment by mistake.
How do you handle partial exemption if we have exempt supplies?
We calculate the recoverable proportion of input VAT under partial exemption rather than assuming full recovery.
Who submits the return to HMRC?
A registered agent holding an Agent Services Account and money laundering supervision reviews and submits it through Making Tax Digital.
What if we voluntarily register for VAT before hitting the threshold?
Voluntary registration is available below the £90,000 threshold and can make sense if you reclaim significant VAT on costs, but it also means charging VAT on sales to customers who may not be able to reclaim it. We talk through the trade-off before you register voluntarily.
What does Making Tax Digital actually require?
Digital records linked end to end into the software that files the return, with no manual re-keying of the final numbers.
Which VAT scheme is right for us?
It depends on turnover, margin and cash flow; we review the options as part of onboarding rather than defaulting to one.
What if our records for vAT return preparation support (Making Tax Digital) are not up to date?
If your records are behind, we scope a catch-up first so vAT return preparation support (Making Tax Digital) starts from a clean, reconciled base. That catch-up is priced and timed separately from the ongoing engagement, so you always know what each part costs.
Who reviews the work before it reaches us?
Every deliverable under vAT return preparation support (Making Tax Digital) is reviewed by a senior principal before it reaches you. You keep access to the underlying file at every stage, so nothing about the work happens somewhere you cannot see it.
Related services
- Tax prep supportMaking Tax Digital for Income Tax supportPreparation support for the quarterly updates and end-of-period statement required under Making Tax Digital for Income Tax, built from digitally kept records.
- BookkeepingMonthly bookkeepingOngoing monthly bookkeeping: transactions sorted into categories, accounts reconciled and month-end reports delivered in the software you already use.
Industries
- Ecommerce (Amazon and Shopify)Bookkeeping for online sellers on Amazon, Shopify, Etsy and their own storefronts, built around clean payout and sales tax data.
- HospitalityBookkeeping for hotels, short-term rentals and hospitality operators reconciling booking platform payouts and occupancy-driven revenue.
- Professional servicesBookkeeping for professional service firms such as engineering, architecture and IT consulting billing clients by project or retainer.
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.