By Stuart Kerr, Partner — BookkeepingPackages Ltd.
Published: 28 Oct 2025 | Updated: 28 Oct 2025 • Contact: support@bookkeepingpackages.co.uk
Crossing the VAT threshold is a milestone, and the first return can feel like a test. The good news is that a calm, methodical approach turns it into routine. Once you’re registered, the aim is simple: every sale and purchase recorded correctly, every figure traceable, and your submission aligned with Making Tax Digital so HMRC gets clean data the first time.
The foundation is up-to-date bookkeeping. As soon as you register, switch on disciplined habits rather than waiting for quarter end. Use cloud bookkeeping software so bank feeds bring transactions in automatically and VAT rates are applied consistently. When invoices and receipts are captured as they happen, your first VAT period becomes a tidy story rather than a reconstruction. It also means you can see, at any point, the VAT you’ve collected and the input VAT you can reclaim, which makes cash-flow planning far less stressful.
Accuracy comes from detail. Sales should reflect the correct rate for what you sell, whether that’s standard-rated items, reduced-rate goods or zero-rated exports. Purchases deserve the same care; not every cost carries recoverable VAT, and those that do need a valid VAT invoice behind them. Keeping digital copies inside Xero or QuickBooks satisfies HMRC’s record-keeping rules and saves you rummaging for paper when you’re close to deadline. If you ever need to explain a figure, a clean audit trail is worth its weight in gold.
Cash-flow deserves attention too. New registrants sometimes mistake VAT they’ve collected for spare cash, only to discover a shortfall when the return is due. By reviewing a live VAT summary during the quarter, you know what is truly yours and what is being held for HMRC. That awareness helps you avoid last-minute borrowing and keeps the first submission from becoming a financial shock.
Submission under Making Tax Digital should feel straightforward once the bookkeeping is in order. Authorise your software to connect to HMRC, review the return on screen, and sense-check the numbers against your sales and purchase activity. If something looks unusual — a sudden jump in input VAT or a period with far fewer zero-rated sales than normal — investigate before you file. Most discrepancies trace back to simple mis-categorisation, and fixing them early prevents an HMRC query later.
If you’d rather not learn all of this on the clock, outsourcing your first VAT quarter can be the sensible route. At BookkeepingPackages.co.uk we configure your software, reconcile each month, and prepare the return so filing becomes a click rather than a cliff-edge. Clients tell us the real benefit isn’t only compliance; it’s the confidence to focus on customers while knowing the numbers add up.
If your registration is recent and the first deadline is approaching, we can steady the ship quickly. Visit www.bookkeepingpackages.co.uk or email support@bookkeepingpackages.co.uk to arrange a free discovery call and we’ll help you get the first return right — and every one after that. (This article provides general information only; for specialist tax advice, please consult a qualified accountant.)
About the Author
Stuart Kerr is Partner at BookkeepingPackages Ltd. An entrepreneur who has worked closely with professional bookkeepers and accountants across multiple ventures, he now leads a team delivering dependable, fixed-fee bookkeeping to UK sole traders and SMEs, with a focus on clarity, compliance and calm, on-time VAT submissions.
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