Free guides made for real businesses like yours.
If you're a UK wholesaler or product-based business, VAT isn't optional — but getting it wrong can cost you dearly. Whether it's incorrect invoices, missed deadlines, or unclaimed input VAT, here’s how to stay compliant, avoid penalties, and keep your books clean.
If your taxable turnover goes over the VAT threshold (£90,000 from April 2024), you must register — no exceptions. Late registration means backdated liabilities and possible fines. Plan ahead and monitor your rolling turnover monthly.
Always double-check whether your goods are standard, reduced, or zero-rated. Many wholesalers mistakenly apply VAT when they shouldn’t — or forget to include it when they should. If you're supplying B2B, correct invoices are essential.
If you're VAT registered, you can reclaim VAT on eligible business expenses. But if you don’t keep proper records or miss the deadline, that’s money gone. Use accounting software or a cloud-based tracker to automate this process.
VAT returns must be submitted and paid on time every quarter — no exceptions. Late submissions lead to surcharges and compliance flags. Consider outsourcing this if it's always last minute.
Making Tax Digital (MTD) for VAT is mandatory. That means digital records, digital submissions, and software that complies. Excel alone no longer cuts it — and HMRC is ramping up enforcement.
VAT doesn’t need to be scary. With the right setup and support, you can stay compliant, keep your records clean, and focus on what matters — moving product and growing your business.
💡 Need help staying VAT compliant? Our VAT Return and Cloud Accounting services keep your wholesale business accurate, efficient, and stress-free.
As of April 2024, the VAT registration threshold is £90,000 in taxable turnover. If your wholesale business exceeds this, you must register or risk penalties and backdated charges.
Yes — as long as you're VAT registered and the purchase is for business use. You’ll need valid VAT invoices and must reclaim within the deadline on your VAT return. Missed claims are lost money.
Absolutely. MTD for VAT is mandatory. You must keep digital records and use MTD-compatible software to file VAT returns. HMRC is increasing compliance checks, so don’t ignore this.
Late registration, incorrect rates, missing VAT on invoices, and failure to reclaim input VAT are some of the biggest ones. Many also submit returns late — triggering HMRC surcharges.
No more guesswork. Book a free VAT consultation and take the confusion out of compliance — once and for all.