If you run a growing business, VAT often starts as a simple admin task and then suddenly feels risky. The question do you need a VAT accountant usually appears when your turnover creeps towards the VAT registration threshold or your sales become more complex. Get things wrong and you risk penalties, HMRC queries and unhelpful cashflow swings.
For 2025/26, the VAT registration threshold is £90,000 of taxable turnover in any rolling 12-month period. HMRC’s current guidance on the VAT registration threshold confirms the £90,000 limit and explains how the test works (HMRC, 2024). At the same time, there are around 2.73 million VAT and/or PAYE registered businesses in the UK, a small increase on the year before (ONS, 2025), so VAT is a normal part of life for many firms.
We will help you answer the question, do you need a VAT accountant for your business, by looking at common VAT challenges, where sector rules make things harder, and practical signs that it is time to bring in expert support.
What does a VAT accountant actually do?
Before you can decide whether you need a VAT accountant, it helps to be clear what we actually do beyond filing returns.
Typical support includes:
- Checking registration position: Reviewing your rolling turnover and plans to confirm whether you must register, can deregister or should consider voluntary registration.
- Setting up correctly: Advising on VAT schemes and making sure your digital records meet Making Tax Digital rules.
- Preparing returns: Reviewing your bookkeeping and VAT codes so that returns are complete and submitted on time.
- Handling HMRC queries: Dealing with VAT inspections, information requests and any corrections or time to pay arrangements.
For many clients, the main benefit is having someone to call before they make a change – opening a new site, launching an online shop or buying commercial property. Our accounting services are set up to provide that mix of regular compliance and ad hoc advice.
When do you need a VAT accountant?
There is no rule that says you must appoint an adviser as soon as you register. Many smaller businesses with straightforward, UK-only sales manage well on their own. The real question is about risk, time and the value of your own attention.
Useful tipping points include:
- Growing turnover near £90,000: You sit within £10,000 of the VAT threshold and expect further growth.
- Frequent changes: You are adding locations, sales channels or product lines regularly.
- Limited internal resource: VAT work usually lands on the owner or one administrator who is already stretched.
- Sector-specific rules: You work in construction, hospitality, property, health, finance or charities.
Business population data shows that at the start of 2024, only 48% of private sector businesses were registered for VAT and/or PAYE, with 52% trading below the line (ONS, 2024). Many of those unregistered businesses will cross the threshold over the next few years, so early advice can prevent rushed decisions later.
If you expect to move from unregistered to registered in the next 12–18 months, it is sensible to ask yourself early, do you need a VAT accountant involved in your planning?
Common VAT headaches where expert support helps
Once you are registered, the question, do you need a VAT accountant, often resurfaces when something goes wrong, or VAT work starts swallowing evenings and weekends.
Typical problem areas are:
- Incorrect VAT rates: Applying 20% to items that should be reduced, zero-rated or exempt, or the other way round.
- Construction and reverse charge: Misunderstanding the construction industry reverse charge and how it links with CIS.
- International and online sales: Selling goods or digital services overseas or through platforms without checking overseas VAT rules.
- Partial exemption: Recovering too much input VAT where you have both taxable and exempt income.
Each of these can lead to assessments if HMRC spots patterns in your returns. Fixing historic errors usually costs more in tax, interest and professional fees than setting things up properly at the start. A short VAT health check can often confirm whether you can carry on alone or whether you do need a VAT accountant more regularly.
Penalties, interest and the cost of getting it wrong
From 1 January 2023, HMRC introduced a points-based penalty regime for late VAT returns. Each late submission gives you a point, and when you reach a threshold, you receive a £200 penalty and further penalties for additional late filings, as set out in HMRC’s guidance on penalty points and penalties for late VAT Returns (HMRC, 2023). Late payments trigger separate penalties and interest. The system is more proportionate than the old default surcharge, but it still affects businesses that repeatedly file or pay late.
If you are asking, do you need a VAT accountant, think honestly about how confident you are that deadlines are met and submissions are accurate. Errors can lead to assessments for underpaid VAT plus interest and penalties. Mistakes the other way can mean you reclaim less VAT than you are entitled to, which hurts cashflow.
A VAT accountant will usually:
- Review your process: Check how invoices are raised, coded and reconciled so that VAT flows properly through your system.
- Spot patterns: Identify recurring errors such as misclassified income or missing import VAT.
- Agree corrections: Help you decide how to correct past mistakes in the most efficient way.
Practical signs it is time to get help
If you are still unsure, these are strong indicators that professional support is worthwhile:
- Regular threshold checks: You track turnover against the VAT threshold every month and worry about missing the point when you must register.
- Frequent query searches: You often Google VAT questions for new products or deals and still feel unsure afterwards.
- HMRC contact: You have already received VAT penalties, late filing points or letters querying your returns.
You do not have to outsource everything. Many businesses keep day-to-day bookkeeping in-house and use us for quarterly VAT reviews or sign off before submission. You can learn more about how we support owner-managed businesses across different sectors here.
Making a clear decision about VAT support
VAT does not have to dominate your time, but it does reward structure and regular review. As your business grows, VAT decisions will affect pricing, margins and cashflow. Against that background, asking do you need a VAT accountant is a sensible part of planning rather than a sign that something is wrong.
For some businesses with simple, UK-only supplies and stable turnover well below £90,000, good bookkeeping and regular internal checks may be enough. For many others – particularly those close to or above the threshold, dealing with multiple sectors or recovering input VAT on complex costs – VAT is too important to leave entirely to chance.
If you are weighing up whether you need a VAT accountant, the next three steps can help. First, review your last four VAT returns and note any areas where you felt uncertain. Second, map out your expected turnover for the next 12–24 months and any major changes in activities, locations or markets. Third, speak to a specialist who can sense-check your position and suggest proportionate support.
If you would like an experienced VAT accountant to review your situation, you can contact us to arrange an initial discussion. We will help you answer the question, do you need a VAT accountant for your business, and, if so, what level of VAT support will keep you compliant while freeing up time to focus on growth.
