If you expect to earn an income of £90,000 or more as a sole trader over a period of one year, you are required to register for VAT with HMRC. As a VAT-registered sole trader, you need to charge your customers VAT on all eligible sales and pay it directly to HMRC when reporting your VAT returns.
At PBAS, we provide a range of services to help you manage your Value Added Tax (VAT) affairs. Whether you’re just starting out or an existing business, we can help you decide whether you need to be VAT registered and monitor your situation to ensure compliance with regulations.
Our team can prepare your VAT return, either from your own bookkeeping records or we can take care of your record keeping and the VAT return. We will ensure that you claim as much VAT as possible, particularly on contentious items such as mixed-use expenditure and motor running costs. Our software allows us to file your VAT returns online with HMRC, which is now the preferred method.
It’s important to avoid penalties and interest that can arise from late VAT registration, errors, late VAT returns, and late VAT payments. By allowing us to take care of your VAT affairs, you can have peace of mind and avoid wasting your hard-earned cash.
Making Tax Digital for VAT
If your business is VAT registered business, you are now required to keep digital records (MTD) and file your tax returns using compatible software.
Being VAT-registered has its advantages, as you can claim back the VAT on eligible goods or services that you purchase for your business.
”Frequently Asked Questions — VAT
When do I need to register for VAT?
You must register for VAT when your taxable turnover exceeds £90,000 in any rolling 12-month period. You can also register voluntarily below this threshold if it benefits your business. Read more: Do I Need to Register for VAT? →
What is the VAT Flat Rate Scheme?
The Flat Rate Scheme allows eligible businesses to pay a fixed percentage of their turnover as VAT instead of calculating VAT on every transaction. It can simplify administration and sometimes save money. Read more: The VAT Flat Rate Scheme — Could It Save Your Business Money? →
Do I need to keep digital VAT records?
Yes — all VAT-registered businesses are required to keep digital records and file returns using MTD-compatible software. Read more about Making Tax Digital →
What happens if I register for VAT late?
If you exceed the VAT threshold and don’t register on time, HMRC can charge VAT on sales going back to the date you should have registered, plus potential penalties and interest. It’s important to monitor your turnover carefully and register promptly. Speak to PBAS if you’re unsure of your position →
Who We Serve
PBAS provides VAT returns for sole traders and micro-businesses across East Lothian, Edinburgh, Midlothian and the wider Scotland area. We’re based in Wallyford, Musselburgh — conveniently located for clients across the Lothians — and we work remotely with clients throughout Scotland.
Whether you’re a tradesperson in Musselburgh, a freelancer in Edinburgh, or a small business owner anywhere in East Lothian, we offer the same personal, affordable service. Get in touch for a free, no-obligation chat →
Related Guides
- Do I Need to Register for VAT?
- The VAT Flat Rate Scheme — Could It Save Your Business Money?
- Making Tax Digital (MTD) — What You Need to Know
- Our Bookkeeping Services
For authoritative HMRC guidance on vat returns, visit the GOV.UK VAT returns guide.
