Episode 6 | A clear, honest and practical guide to VAT for small businesses

Mum & Son On The Money Podcast

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Monday, 20 April 2026 - 56 minutes

Lorraine and Travus from Happy Days Accountants break down everything small business owners need to know about VAT in this practical and wide-ranging episode of Mum and Son on the Money. From understanding what VAT actually is and when you need to register, to the pros and cons of voluntary registration, this episode tackles one of the most confusing areas of running a business.

They explore the £90,000 threshold, explain how reclaiming VAT works, and highlight why being VAT registered isn’t always the advantage it might seem. There’s a clear look at the difference between cash and accrual VAT schemes, how pricing and profitability are affected, and why B2B and B2C businesses experience VAT very differently.

The conversation also covers common mistakes—like charging VAT when you’re not registered, using incorrect VAT codes in accounting software, and misunderstanding zero-rated vs “no VAT” transactions. They dive into more advanced areas too, including marginal VAT schemes, international VAT complications, and the risks of trying to split businesses to avoid registration.

There’s plenty of real-world advice on staying compliant, preparing for VAT inspections, managing cash flow by setting aside VAT, and knowing when to seek professional help. Plus, a reminder that while mistakes can happen, good record-keeping and honesty go a long way with HMRC.

A must-listen for anyone running—or thinking of starting—a small business.

#VAT #SmallBusinessUK #AccountingTips #BusinessFinance #HMRC #EntrepreneurUK #TaxAdvice #Bookkeeping #StartupTips #MoneyMatters

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