Recent VAT Changes Affecting Small Businesses

Recent changes to VAT regulations have significant implications for small businesses. Understanding these changes is crucial for maintaining compliance and optimizing your VAT position.

Making Tax Digital (MTD) for VAT

All VAT-registered businesses must now use Making Tax Digital compatible software to keep their VAT records and submit their VAT returns.

What This Means for You:

  • Must use MTD-compatible software
  • Digital record-keeping required
  • Direct submission from software to HMRC
  • Digital links between different software programs

VAT Registration Threshold

The VAT registration threshold remains at £85,000 for 2024, but businesses should monitor their turnover carefully to ensure timely registration when required.

Flat Rate Scheme Changes

Recent changes to the Flat Rate Scheme have made it less attractive for some businesses, particularly those with low levels of goods purchases.

Expert Advice

"We help our clients navigate these VAT changes and ensure they're using the most tax-efficient VAT schemes available. Our team stays up-to-date with all VAT developments to provide you with the best advice."

How We Can Help

At Duncan Joyce & Associates, we provide comprehensive VAT services including:

  • MTD software setup and training
  • VAT return preparation and submission
  • VAT scheme optimization
  • HMRC correspondence handling

Published on December 03, 2025