VAT penalty help
VAT penalties now run on points: every late return earns one, and at your threshold (four for quarterly filers) each further late return costs £200 — while late payment carries its own escalating charges from day 15 and interest throughout. The system is designed to forgive the occasional slip and punish the pattern, which means the response to a first penalty letter decides whether you're starting a pattern or ending one.
How we handle it
We do three things in order: file anything outstanding immediately (points stop accruing), assess appeal grounds for what's already charged (reasonable excuse succeeds more than people expect, especially around illness and genuine software failures), and fix the pipeline — a deadline-proof returns process from £35 a month so the letters simply stop.
The fixed fees behind this service
| Service | Fixed fee |
|---|---|
| VAT Returns | from £35/mo |
| HMRC Investigation Support | from £299 |
| Bookkeeping | from £49/mo |
VAT Returns
Quarterly VAT prepared and submitted under Making Tax Digital.
- Quarterly VAT returns prepared and filed under Making Tax Digital
- The right scheme for you — standard, flat rate or cash accounting
- VAT registration and deregistration handled when needed
| VAT returns only (your bookkeeping) | £35/mo |
| VAT + bookkeeping bundle | £119/mo |
| VAT registration (one-off) | £79 |
HMRC Investigation Support
A letter from HMRC doesn't have to become a nightmare — representation from first reply to resolution.
- Your HMRC letter decoded within one working day — what they're really asking, and how worried to be
- Every reply drafted and sent by us, so nothing volunteered accidentally makes things worse
- Records reviewed before HMRC sees them — problems found by us first, not by the inspector
| Compliance-check letter — review and first response | £299 |
| Full enquiry handled to closure (single tax year) | from £749 |
| Voluntary disclosure to HMRC, prepared and negotiated | from £599 |
HMRC Investigation Support — full details, packages and FAQs →
Bookkeeping
Your records kept clean and current, every month, on cloud software.
- Transactions categorised and reconciled every month
- Cloud software set up and maintained (Xero, QuickBooks or FreeAgent)
- Receipts captured digitally — photograph and forget
| Up to 50 transactions a month | £49/mo |
| Up to 150 transactions a month | £89/mo |
| Up to 300 transactions a month | £149/mo |
From first message to done
WhatsApp or the form — a few sentences is enough. A real person replies the same working day.
One price for the job, confirmed before anything starts. Complex case? We say so now, not on the invoice.
Photos of documents are fine. We chase whatever's missing — that's part of the job, not yours.
You review everything first; filings go to HMRC or Companies House electronically with same-day confirmation.
Deadlines that apply here
| Date | What happens |
|---|---|
| 1 month + 7 days after quarter end | VAT return filing and payment deadline for each quarter |
| £90,000 rolling turnover | Compulsory VAT registration threshold — measured over any rolling 12 months, not your accounting year |
Why choose Bohzo Accountants in the UK?
Your fee is agreed before any work starts and never changes mid-job. No hourly billing, ever.
Secure portal and WhatsApp — no office visits, no printing, no waiting rooms.
Bohzo Accountants is a trading name of IGI Security Services Ltd, Company No. 15881180.
We track every HMRC and Companies House date that applies to you, so you don't have to.
Terms you'll meet along the way
Making Tax Digital (MTD)
HMRC's regime requiring digital records and software-filed returns — long mandatory for VAT, arriving for Income Tax from April 2026.
Flat Rate Scheme
Pay HMRC a fixed percentage of turnover instead of tracking every input. Simpler, but the 16.5% limited-cost-trader rate killed the old easy win for many.
Input vs output VAT
Output VAT is what you charge customers; input VAT is what you pay suppliers. You hand HMRC the difference — which is why missed input claims are pure loss.
Penalty points
Each late VAT return earns a point; at your threshold (4 for quarterly filers) every late return costs £200. Points expire after sustained good behaviour.
Aspect vs full enquiry
An aspect enquiry questions specific entries in a return; a full enquiry opens the whole return. The letter's wording tells you which — and shapes the strategy.
Behaviour categories
HMRC penalties scale by whether an error was despite reasonable care, careless, or deliberate — the classification is usually the real battlefield.
Time to Pay
An instalment arrangement with HMRC for tax you can't pay at once — routinely agreed, and engaging early is what keeps it available.
Discovery assessment
HMRC's power to assess tax outside normal enquiry windows — 4 years for innocent error, 6 for carelessness, 20 for deliberate behaviour.
VAT penalty help: your questions answered
How do VAT penalty points actually work?
Each late return: one point. Reach the threshold — 4 points on quarterly returns, 5 on monthly, 2 on annual — and every subsequent late return triggers £200. Points expire after two years of good behaviour, and the counter fully resets after a clean streak (12 months for quarterly filers) plus all returns brought up to date. Getting current is therefore both the fix and the reset.
What about penalties for paying VAT late?
Separate track: nothing for the first 15 days (if you pay or arrange Time to Pay), 2% at day 15, another 2% at day 30, then a daily 4%-per-annum charge — plus interest regardless. The practical lesson: even when cash is short, engaging HMRC by day 15 (a payment plan counts) removes most of the sting.
My accountant/software missed the deadline — can I appeal?
Reliance on a third party isn't automatically an excuse, but the surrounding facts often are: system outages, submission failures with evidence, serious illness, bereavement. Appeals go first to HMRC review, then tribunal if needed — most resolve at review when the story is documented. We'll give you an honest read on your grounds before charging for an appeal.
When do I have to register for VAT?
When your taxable turnover in any rolling 12-month period passes £90,000 — a rolling test, not your accounting year, and the most common way businesses get caught out. We monitor it for bookkeeping clients automatically.
Which VAT scheme is best for me?
It depends on your margins and customers. The flat-rate scheme suits some service businesses; cash accounting helps if customers pay slowly; standard suits most. We'll compare them for your numbers before registering you.
I've received a compliance check letter — how bad is it?
Usually less bad than it reads. Most checks focus on one aspect — a expenses category, a VAT period, a source of income HMRC can see but your return doesn't show. The response strategy matters enormously: answer exactly what's asked, accurately, with nothing extra. That's the £299 first stage, and many checks end there.
What if I know there's actually something wrong?
Then a voluntary disclosure — made before HMRC finds it — is dramatically cheaper in penalties, sometimes the difference between 0–30% and up to 100% of the tax. We prepare the numbers, present the disclosure and negotiate the settlement. It's the conversation people put off for years and resolve in weeks.
Which bookkeeping software do you use?
Xero, QuickBooks or FreeAgent — whichever suits your business (or whichever you already use). Software subscription can be included in your monthly fee, and we handle all the setup and migration.
What counts as a transaction?
Each line on your bank statement — a payment in or out. Most one-person businesses sit comfortably under 50 a month. If you drift over your band we'll tell you before the fee changes, never after.
VAT Returns in popular locations
Recent client feedback
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