VAT BOOKKEEPING SERVICE · UK
We keep your VAT records up to date every UK working day, in the accounting software you already use. Each transaction gets the right VAT code, each reclaim has the invoice behind it, and the figures are ready to review when the quarter ends.
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HOW VAT BOOKKEEPING RUNS
A VAT return is only as good as the records underneath it. If those records are left until the deadline, the quarter turns into a rush to find invoices and guess at VAT codes. We do the work as the transactions happen, so the return is a check rather than a scramble.
VAT CODES ON EVERY TRANSACTION
Each working day we reconcile your bank and card accounts and code every line. That includes the VAT treatment: standard rate, reduced rate, zero rate, exempt, or outside the scope of VAT. GOV.UK sets the standard rate at 20%, the reduced rate at 5% and the zero rate at 0%.
Many lines look alike but are treated differently. Bank charges, insurance, wages and most transfers carry no VAT to reclaim. Some suppliers are not VAT registered at all. We code each one on the evidence, not on a guess, and where your software supports bank rules, we set them up for regular payments so they are coded the same way every time.
RECLAIM EVIDENCE
GOV.UK says you must hold valid evidence of a taxable supply to reclaim VAT, and the amount you reclaim is normally the VAT shown on your supplier's VAT invoice. A card payment on its own is not enough.
So we match each purchase to its invoice or receipt and check the supplier, date, net amount and VAT. Where the invoice is missing, we list it and follow it up with you or the supplier. If you use a capture tool such as Dext, we review what it has read before it is published to your books.
SALES AND OUTPUT VAT
Output VAT is the VAT you charge your customers. We record sales invoices where you ask us to, or check the ones your team raises, and match customer payments against them. Credit notes are recorded against the right invoice, so the VAT on them reduces the right figure.
If your sales come in through a till, a card terminal or an online platform, we work with the reports it gives you. The aim is that the sales figure on the return can be traced back to real records.
MAKING TAX DIGITAL FOR VAT
GOV.UK says all VAT-registered businesses should now be signed up for Making Tax Digital for VAT. Some records must be kept digitally, and the return is sent from compatible software. Where more than one package is used, the records must be digitally linked rather than copied and pasted between them. If you are a sole trader or landlord, see also our bookkeeping for MTD for Income Tax.
We work inside the software you already use, such as Xero, QuickBooks, Sage, FreeAgent, Zoho Books or VT Transaction+, so the records stay in one place. You keep your own subscription and invite us as a user where the software supports it.
AT THE END OF EACH VAT PERIOD
When a VAT period closes, every bank and card account is already reconciled to its statement balance. We then run a short set of checks on the VAT figures:
Whoever is responsible for the return, you or your accountant, can then review the figures and submit it from the software. If you would like us to prepare and submit the VAT return as well, that is quoted separately.
WHAT IS INCLUDED
Every package includes bookkeeping every UK working day, bank reconciliation and receipt matching, finance inbox monitoring, missing invoices and receipts followed up, and a monthly financial summary. For a VAT-registered business, that daily work is what keeps the VAT records ready.
VAT return submission, catch-up work, tax returns, payroll, CIS returns and statutory filings sit outside the monthly packages. We quote for them separately, so you only pay for what you ask us to do.
GOV.UK also says VAT records must be kept for at least 6 years. Because the records sit in your own software, with documents attached to the transactions, they stay with you. Our guide on how long to keep business records explains more.
VAT BOOKKEEPING PRICES
Use your annual turnover to find your starting point. We review your records, your volumes and how paperwork reaches you, then confirm one fixed monthly fee in your quote. One business entity per package. Above £5 million turnover, we give a tailored quote.
FOR SMALL BUSINESSES
Daily bookkeeping for sole traders, consultants and small businesses who want their time back.
£295/ month
Talk about EssentialsFOR GROWING BUSINESSES
For growing agencies, trades and service businesses with more people, purchases and paperwork.
£495/ month
Talk about PlusFOR ESTABLISHED BUSINESSES
For established teams who need someone keeping the day-to-day books moving across their business.
£795/ month
Talk about ManagedPrices are per month, with the final fee confirmed in your quote. Your software subscription is separate. VAT return submission, catch-up work, tax returns, payroll and statutory filings are quoted separately. Full pricing details →
BEHIND ON YOUR VAT RECORDS?
If a VAT return is due and the books are months behind, we review the records first and agree a catch-up plan with a separate quote. Then the daily routine keeps the next quarter on track.
Read about catch-up bookkeepingThe monthly packages keep your VAT records accurate and ready for the return. Preparing and submitting the VAT return is outside the packages and quoted separately if you want us to do it.
Yours. We work in Xero, QuickBooks, Sage, FreeAgent, Zoho Books, Clear Books, KashFlow, Pandle, QuickFile, FreshBooks and VT Transaction+, with Dext, Hubdoc or AutoEntry for receipts. See our Xero bookkeeping service and QuickBooks bookkeeping service pages.
We list it, follow it up with you or the supplier, and track it until it arrives. Our guide on reclaiming VAT explains why the invoice matters.
We keep the records in the way your scheme needs, once you or your accountant confirm which scheme you use. Our guide to the different VAT schemes gives an overview.
Essentials is £295 per month for turnover up to £150,000, Plus is £495 for £150,000–£500,000, and Managed is £795 for £500,000–£5 million. We review your records and workload, then confirm a fixed monthly fee in your quote.
LET’S TALK ABOUT YOUR VAT RECORDS
Tell us which software you use, when your VAT periods end and where your invoices arrive. In a 30-minute call we will talk through the daily routine and the monthly fee that fits. You can also call 020 7123 9335, email [email protected] or message us on WhatsApp.
Book a free callSources: GOV.UK, VAT rates; Keeping VAT records; VAT guide (VAT Notice 700); Making Tax Digital for VAT.
