We’re seeing a wave of letters from HM Revenue & Customs about businesses potentially exceeding the VAT threshold.

Important point 👇
📬 These letters often don’t actually ask for a response — they’re a prompt to check your figures, not an accusation or an enquiry.

So if you’ve received one, don’t panic… but do take it seriously.

📈 The VAT threshold (£90,000) is based on a rolling 12-month turnover, not your year-end accounts — this catches a lot of people out.

🔍 What you should be doing:
✔️ Review your rolling 12-month turnover
✔️ Make sure you’re only including VAT-taxable UK turnover
✔️ Double-check timing (invoiced vs earned income)

🌍 For many of my clients — especially those providing services to non-UK customers — this is where confusion happens.

In a lot of cases:
➡️ Services supplied to overseas clients are outside the scope of UK VAT
➡️ That income may not count towards the VAT threshold

🚨 Which means… the headline turnover HMRC sees isn’t always the full story.

💡 Bottom line:
This letter is a nudge to sense-check your position — not something to ignore, but also not something to lose sleep over.

If you’re unsure whether your turnover counts (especially with overseas clients), it’s worth getting clarity now rather than dealing with a problem later.

Please get in touch if you need any assistance

#VAT #HMRC #SmallBusinessUK #TaxTips #Bookkeeping #FreelancersUK