HMRC VAT Reporting

Once you’re VAT-registered you must charge it on your goods or services and you may also reclaim it on certain business-related goods and services.

It is an obligation to report to HMRC the amount of VAT you’ve charged and the amount of VAT you’ve paid through a VAT return process which is done usually every three months.

The difference between Flat Rate VAT and Standard rate VAT:

- Standard rate calculates your VAT by this formula:

(VAT paid on your own purchase) – (VAT charged) = Standard Rate

- The flat rate VAT simplifies VAT by allowing you to pay a percentage of your total sales each quarter to HMRC.

Different types of businesses pay different rates, so we've put together an easy-to-use guide to help find the rate to suit your business. Because VAT flat rates vary, you may or may not be better off under the Flat Rate Scheme, so we do recommend you take professional advice from a bookkeeper before registering.

Our dedicated bookkeeping service can deal with HMRC on your behalf and advise on what you can reclaim too – allowing you to focus on your business.

We've created a visual guide, showing you what flat VAT rates different businesses have. Click here to see our VAT infographics:

Flat rate VAT