VAT in the new tax year: what you need to know
As the new tax year gets underway, VAT is worth a quick revisit. It’s a tax on most goods and services that businesses collect and pass to HMRC, and it remains one of the government’s biggest sources of revenue. In practice, you charge VAT on sales, reclaim it on costs, and pay the difference – but the system is far from simple, with frequent rule changes that can affect cashflow and compliance.
This year, there’s a new relief on donated goods coming in from April 2026, alongside a continued push towards digital reporting and longer-term plans to simplify the system. The start of the tax year is a good moment to sense-check your VAT setup, make sure you’re up to date, and confirm everything is working as efficiently as it should.
If you’re unsure whether your VAT position is as efficient as it could be, or you just want a second opinion, have a chat with the Business Godparents, we’lll help you make sense of it and spot any opportunities you might be missing.