MTD VAT returns for Dorset businesses and builders
Accurate, on-time MTD VAT returns for Dorset businesses and builders, including the construction reverse charge – from a Xero Certified bookkeeper.
Free quote – just ask
What’s included
- Preparing and filing your quarterly (or monthly) VAT return through MTD-compatible software
- Checking the VAT treatment of every transaction before filing
- A clear summary of the amount due and the payment date
- Handling the domestic reverse charge for building and construction services
- Help with VAT registration as you approach the £90,000 threshold
- Advice on Flat Rate, Cash Accounting and Annual Accounting schemes
- Correcting past errors and dealing with HMRC letters
VAT without the headache
Since April 2022 every VAT-registered business has had to follow Making Tax Digital for VAT: keeping digital records and sending returns through compatible software. If you’re still copying figures from a spreadsheet, or dreading the quarterly deadline, I can take it off your hands.
I’ll check the VAT treatment of your sales and costs, correct anything that’s been coded wrongly, prepare the return and send it to you for approval before I file it. You’ll know exactly what’s due and when. As a Xero Certified Advisor, I can set up Xero so most of this happens automatically – but I also file VAT returns from QuickBooks and Sage.
VAT for builders and construction trades
Construction is where VAT gets complicated, and where mistakes are most common. I regularly help builders with:
- The domestic reverse charge – knowing when it applies, invoicing correctly and recording it on the right side of the return
- End users and intermediaries – getting written confirmation from customers who aren’t subject to the reverse charge
- Different rates on residential work – some new builds, conversions and energy-saving installations are zero-rated or reduced-rated, but the rules are strict
- Materials and plant hire – reclaiming the VAT you’re entitled to, and not what you’re not
- Cash flow – the reverse charge often means subcontractors receive VAT repayments, so filing promptly gets money back sooner
VAT returns in Ferndown, Verwood and across Dorset
VAT rules vary a lot between trades. A few examples I see locally:
- Engineering and trade businesses on the Ferndown and Ebblake industrial estates, with imports, large purchases and mixed supplies
- Builders and trades in Verwood and West Moors dealing with the reverse charge
- Holiday lets, cafés and tourism businesses near the New Forest, where different rates apply to food, drink and accommodation
- Online and creative businesses in Bournemouth and Poole selling to customers overseas
- Farms and rural businesses around Cranborne with diversified income
Choosing the right VAT scheme
The Flat Rate Scheme can save time and sometimes money for smaller businesses, but not always – particularly for “limited cost traders”, which catches many labour-only trades. Cash Accounting can help your cash flow if customers are slow to pay. I’ll run the numbers so you choose the right option.
Costs you can’t reclaim
Some VAT can’t be reclaimed at all – for example on business entertainment, or on most cars that are available for private use (vans are usually fine). I’ll make sure these are treated correctly so your return stands up to any HMRC check.
Already registered, but behind?
If you’ve missed a return or HMRC has written to you, get in touch. I can bring your VAT records up to date, file outstanding returns and help you deal with HMRC.
VAT returns (MTD): frequently asked questions
When do I have to register for VAT?
You must register if your VAT-taxable turnover goes over £90,000 in any rolling 12-month period, or if you expect it to within the next 30 days. You can also register voluntarily below that figure, which can make sense for some businesses.
When is my VAT return due?
Usually one calendar month and seven days after the end of your VAT period. For a quarter ending 30 June, both the return and payment are due by 7 August.
What happens if a VAT return is late?
HMRC uses a points-based system for late returns, with a £200 penalty once you reach the points threshold, and separate penalties and interest for late payment. Filing on time every quarter avoids all of this.
What is the VAT domestic reverse charge?
For most construction services supplied between VAT-registered businesses that are also in CIS, the customer – not the supplier – accounts for the VAT. The subcontractor’s invoice shows the VAT but says “reverse charge”, and the contractor records it on their own return. It doesn’t apply when you work directly for a homeowner or an end user.
I’ve found a mistake on a past VAT return. What should I do?
Smaller errors can often be corrected on your next return; larger ones need to be reported to HMRC separately. I’ll work out which applies and put it right.
VAT returns (MTD) across East Dorset
VAT returns (MTD) for businesses in: