Bookkeeping & VAT
What Is Bookkeeping and Why It’s Essential
Bookkeeping is the process of recording and organising a business’s financial transactions — everything from sales and purchases to expenses and bank reconciliations. It’s the foundation for financial reporting, tax returns, and business planning.
Without accurate bookkeeping, you can’t track cash flow, manage budgets, or stay compliant with tax rules. Good bookkeeping keeps your business organised, financially healthy, and prepared for HMRC inspections.
How Accurate Bookkeeping Helps
When your records are up to date:
- Cash flow is clear — you know what’s coming in and going out.
- Budgeting is realistic — helping you plan for growth, investment, and tax bills.
- Compliance is simpler — reducing the risk of penalties and fines.
- Decision-making improves — with reliable figures at your fingertips.
VAT Schemes Explained
If your business is VAT-registered, you’ll need to charge VAT on sales and submit returns to HMRC. There are different schemes to suit different businesses:
- Standard VAT Accounting: Pay VAT on invoices issued and reclaim on purchases made.
- Flat Rate Scheme: Pay a fixed percentage of your VAT-inclusive turnover — simpler, but you can’t reclaim VAT on most purchases.
- Cash Accounting Scheme: Pay VAT when you’re paid by customers and reclaim it when you pay suppliers — helpful for cash flow management.
VAT Thresholds and When to Register
You must register for VAT if your taxable turnover exceeds £90,000 (2024/25 threshold). Voluntary registration is also an option for smaller businesses looking to reclaim VAT on expenses or appear more established
How Park Lane Helps with Making Tax Digital (MTD)
Making Tax Digital (MTD) requires businesses to keep digital records and submit VAT returns using MTD-compatible software.
At Park Lane, we:
- Set up and manage MTD-compliant software like Xero, QuickBooks, and Sage.
- Ensure VAT records are properly maintained.
- File returns on time, every time.
- Provide clear, jargon-free support on MTD rules and deadlines.
Quarterly vs. Annual VAT Returns: Pros and Cons
Quarterly Returns
- Pros: Easier to manage cash flow, regular updates on VAT liability.
- Cons: More admin throughout the year.
Annual Returns
- Pros: Less frequent reporting.
- Cons: Larger lump sum payment, less frequent oversight of VAT position.
Most VAT-registered businesses file quarterly. Park Lane can help you choose the right option for your business.
Why Outsourcing Bookkeeping Makes Sense
- Less admin and paperwork for you.
- Fewer errors and missed deadlines.
- Clear, accurate financial data whenever you need it.
- Better support with VAT, tax planning, and business advice.
At Park Lane, we tailor bookkeeping services to fit each client — whether you need full management or just quarterly checks.
Our Service Packages are bundled for value.
They illustrate that we have an offering for every stage of the business lifecycle.
Our Fixed fee Micro Package for small companies from just £100 + VAT monthly
Aimed at small businesses with revenue of £90k per year or more
For Your Business
- Annual accounts prepared and filing
- Companies House Confirmation statement filed
- Corporate Tax Return prepared and filed
- Payroll processing & filing for Directors and employees
- Profit extraction advice & tax mitigation planning meeting annually
- Access to your businesses secure e-vault
- Accounting software available - Xero or Quickbooks
For You
- Personal Tax Return and computation submissions
- Payment reminders included for January & July
- Rental accounts, share dividends, interest all included.
- Access to your personal secure e-vault
Plus unlimited e-mail support only from your named accountant client manager.
Our Business Package starts from £150 + VAT monthly
Aimed at established businesses with revenues over £90k with an accounting system in place
For Your Business
- Everything in our Micro Package for your business Plus
- VAT check & filing quarterly
- Ongoing bookkeeping advice & assistance with reconciliations
- Pre year end meeting to identify tax saving opportunities and actions.
- Post year end review with full explanation of results
For You
- Everything in our Micro Package for you Plus
- Pre tax year end meeting to identify potential tax saving opportunities
- Review of profit extraction advice and "what if" scenario illustrations
- 2 accountants references for mortgage or loan applications included
Plus unlimited e-mail support & unlimited telephone support from your named accountant client manager.
Our Grow & Control package from £400 + VAT monthly
Aimed at established businesses with the desire to grow and have all the numbers to hand.
For Your Business
- Everything in our Business Package for your business Plus
- Our assistance with planning and budgeting for your business - if you are serious you need a plan!
- Our flagship bookkeeping service delivered by our experienced and fully trained bookkeepers.
- Monthly or Quarterly management accounts with comments and insights
- Quarterly review in person with your account manager - designed to identify key actions to improve or grow your business
For You
- Everything in our Business Package for you Plus
- Consultation on planning for business exit, sale, retirement or succession - a personal plan for you and your family.
Plus unlimited e-mail support & unlimited telephone support from a named accountant client manager.
Why Choose Park Lane Accountants
Friendly service
At Park Lane, we care about you and your business, and we’re always just a phone call or email away
Peace of mind
Our helpful, jargon-free approach takes the stress out of tax, bookkeeping, payroll, pensions and more
Grow your business
Using our experience and expertise, we can help you identify and capitalise on new opportunities
Modern tools
We use the latest cloud-based accounting software to keep your finances up-to-date, accessible and secure
We are your local accountant - always
Based in the community, we understand local needs and are proud to support other small and growing businesses. That said our reach is far and we know that our clients value the relationship we hold above everything else.