Common VAT Mistakes to Avoid

1. Late Filing & Payments

The most common (and costly) error, late returns trigger interest and penalties.
Fix it: Keep bookkeeping updated monthly so the quarter-end isn’t a panic.

2. Missing Input VAT

Fuel, tools, materials, subscriptions, supplier invoices. If you are missing any of these it means you overpay VAT.
Fix it: Capture receipts digitally as you go.

3. Claiming VAT You Shouldn’t

Personal purchases, invalid invoices, or VAT from non-registered suppliers can all cause HMRC issues.
Fix it: Always check invoices include valid VAT numbers.

4. Being on the Wrong VAT Scheme

Flat Rate, Cash Accounting, Standard…. being on the wrong one can cost you.
Fix it: Review your scheme regularly.

MTD VAT: Staying Compliant

HMRC now requires:

• Digital records
• Software-based submissions
• No manual data copying

If your system isn’t fully digital, you risk penalties even if the numbers are correct.

Why Monthly Bookkeeping Helps

Regular bookkeeping means:

• Accurate, digital records
• No lost receipts
• Fewer mistakes
• Smoother quarter-end VAT
• On-time submissions every time

Need help with VAT?

We support businesses with monthly bookkeeping that keeps VAT accurate, compliant, and stress-free.