VAT Registration & Returns for Creative Agencies
VAT gets complicated quickly when you are dealing with client recharges, overseas clients, and digital services. We make sure you are on the right scheme and filing correctly.
Sound familiar?
These are the challenges we hear from agency founders every week.
You are not sure if you should be VAT registered
The VAT registration threshold catches many growing agencies by surprise. Once you breach it, you have a legal obligation to register — and late registration means penalties and interest.
You are on the wrong VAT scheme
Flat Rate, Standard Rate, Cash Accounting — the right scheme depends on your cost structure and client base. Being on the wrong one could be costing you thousands each year.
International clients and suppliers add complexity
Supplying services to EU or international clients, using overseas software tools, or paying foreign contractors all create VAT complexities that most agencies get wrong.
What's included
Everything you need, handled by accountants who specialise in agencies.
VAT registration and scheme selection
We register you for VAT and advise on the most beneficial scheme for your agency — whether that is Flat Rate, Standard Rate, or Cash Accounting.
Quarterly VAT return preparation and filing
We prepare and file your VAT returns via Making Tax Digital compliant software, ensuring all transactions are correctly coded and the return is submitted on time.
VAT on cross-border services
We advise on the VAT treatment of services supplied to or received from overseas — including the reverse charge mechanism and place of supply rules.
Media passthrough VAT treatment
When you pass media spend through to clients, the VAT treatment needs careful handling. We make sure disbursements and recharges are treated correctly.
VAT health checks and scheme reviews
We periodically review your VAT position to check you are still on the most beneficial scheme and flag any compliance risks before they become problems.
Frequently asked questions
You must register when your taxable turnover exceeds the VAT threshold (currently £90,000) in any rolling 12-month period, or when you expect to exceed it in the next 30 days. You can also register voluntarily below the threshold, which can be beneficial if you have significant input VAT to reclaim.
It depends on your cost base. The Flat Rate Scheme is simpler and can save money if you have low expenses. But if you have significant costs with VAT — subcontractors, software, equipment — Standard Rate often works out better. We model both options for you.
Services supplied to business customers outside the UK are generally outside the scope of UK VAT, meaning you do not charge VAT. However, the rules are nuanced and depend on the type of service and the client's location. We make sure each invoice is treated correctly.
Ready to get started?
Get your VAT sorted — book a free consultation
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