Publication date: 05.02.2026
I am a certified UK tax and accounting professional who works daily with clients across various industries — small businesses, international entrepreneurs, and non-residents entering the UK market. My role is to help them navigate HMRC requirements, build effective tax strategies, and keep their businesses compliant, stable, and financially protected. My approach combines strong academic training, international experience, and a practical understanding of how UK taxation works in real business environments. Clients rely on me for Self Assessment, CT600, VAT, CIS, company formation, and long-term tax advisory. I focus on accuracy, transparency, and tailored solutions, because every business has its own structure, risks, and goals. I work with both UK-based clients and those operating internationally, providing the support they need to manage their obligations confidently within the UK tax system.
In 2026, a UK-based service company approached me, accountant and VAT advisor Iryna Shmulenko, after exceeding the VAT registration threshold but failing to register on time. The business had experienced rapid growth in sales across the UK and Europe, yet the directors were unfamiliar with VAT obligations and Making Tax Digital (MTD) requirements. Without urgent professional support, the company faced significant risks of HMRC penalties, backdated VAT liabilities, and compliance disruptions affecting cash flow and operations.
Client's core challenges:
— Late VAT threshold breach without timely registration;
— Risk of HMRC penalties and backdated VAT assessments;
— Lack of understanding of Making Tax Digital (MTD) compliance requirements;
— Need for urgent VAT number issuance and HMRC communication;
— Incorrect VAT treatment of sales and expenses affecting cash flow;
— Requirement for ongoing quarterly VAT Returns submission support.
Strategic Approach to VAT Registration and MTD-Compliant Reporting
My initial step was to conduct a full review of the client’s turnover history, sales structure, and invoicing practices. This audit confirmed that the business had exceeded the VAT threshold earlier than expected, requiring immediate registration and corrective action to minimize penalties and ensure full compliance with HMRC regulations.
I developed a tailored VAT compliance strategy focusing on the following pillars:
- Completing urgent VAT registration and managing HMRC correspondence.
- Reviewing historical transactions to determine correct VAT liability and effective registration date.
- Implementing an MTD-compliant VAT reporting system using approved accounting software.
- Preparing accurate quarterly VAT Returns with proper input and output VAT calculations.
- Advising on VAT planning to improve cash flow and prevent future compliance risks.
Implemented Solutions and Tax Measures
The implementation phase involved full VAT registration support, corrective compliance measures, and ongoing reporting setup. I provided comprehensive assistance for:
- Submitting the VAT registration application and obtaining the VAT number efficiently.
- Reviewing past invoices and transactions to calculate potential backdated VAT exposure.
- Setting up Making Tax Digital (MTD) compliant systems for digital VAT submissions.
- Preparing and submitting quarterly VAT Returns in full compliance with HMRC requirements.
- Advising management on correct VAT treatment for future sales, expenses, and cross-border activity.
Results and Benefits Realized
- Successfully completed VAT registration and restored compliance with HMRC requirements.
- Minimized penalty exposure through proactive corrective action and accurate reporting.
- Implemented a fully MTD-compliant VAT reporting framework for ongoing submissions.
- Improved cash flow planning through correct VAT input and output calculations.
- Established long-term VAT compliance processes to support business growth.
Client review
Frequently Asked Questions (FAQ)
Question
When does a UK business need to register for VAT?
Answer
A business must register for VAT once its taxable turnover exceeds the VAT threshold within a 12-month period. Timely registration is essential to avoid penalties and backdated liabilities.
Question
What is Making Tax Digital (MTD) for VAT?
Answer
MTD is a UK government initiative requiring businesses to keep digital VAT records and submit VAT Returns electronically through HMRC-approved software.
Question
Can late VAT registration lead to HMRC penalties?
Answer
Yes, HMRC can impose penalties and require payment of backdated VAT. However, professional support can reduce risks through corrective compliance actions and accurate reporting.
Thanks to comprehensive VAT registration and MTD reporting support, the client successfully restored compliance, minimized penalty exposure, and established a sustainable VAT framework for ongoing operations.
This case demonstrates the importance of proactive VAT advisory services in ensuring regulatory compliance, protecting cash flow, and supporting long-term business growth in the UK in 2026 and beyond.
