vat for creatives

VAT Mistakes Make the Tax man Smile

One wrong move, the tax man wins

VAT specialists for UK creatives. The3Key handles registration, returns, and every confusing rule HMRC throws at you.

Zero VAT Mistakes
Stay Registered, Filed and Safe
Beat the Deadlines, Dodge the Fines

VAT is the Tax Man’s favourite weapon

£90k? Register fast, avoid penalties

You’ve got 30 days to register for VAT. Miss it and HMRC hits with penalties and interest. The3Key handles VAT for UK creatives, registration, returns and rules, done on time.

VAT SUPPORT

VAT Really Shouldn’t Be a Plot Twist

Stay compliant without the confusion

We handle registrations, returns and HMRC rules with clear guidance, keeping your business protected and deadlines managed.

VAT threshold

When the tax man comes knocking hard

You can't hide from the £90,000 threshold

You’ve got 30 days to register for VAT. Miss it and HMRC hits with penalties. The3Key handles VAT for UK creatives, registration, returns and rules, done right and on time.

EARLY REGISTRATION

Register for VAT before hitting the threshold to stay compliant.

Backdated Support

We handle VAT registration after you've crossed the limit.

VOLUNTARY REGISTRATION

Register early if it benefits your business or client perception.

PRE-REGISTRATION CLAIMS

Reclaim VAT on eligible expenses made before you registered.

THE TAX MAN WINS WHEN YOU'RE REACTIVE, WE KEEP YOU AHEAD

The VAT threshold is £90,000 in any rolling 12 months, not your tax
year. Hit it and you’ve 30 days to register.

Penalties

Miss a deadline, get a penalty, no exceptions

VAT due one month post-quarter, Non-negotiable
Late Filing Penalties

Miss a VAT deadline and you’ll quickly collect penalty points, fines, and HMRC attention.

the fix:

The3Key files on time, every time. Keeping your record clean and penalties off your back.

Missed Payments

Pay VAT even a few days late and you’ll face rising penalties, fees, and interest charges.

the fix:

Deadlines, schedule reminders, and ensure every VAT payment lands before interest kicks in.

HMRC Scrutiny

Inaccurate VAT returns attract HMRC attention, trigger audits, and cause delays.

The fix:

Our quarterly reviews keep every digit accurate, leaving HMRC with nothing to challenge.

VAT Quarter Confusion

Misaligned VAT quarters disrupt flow, complicate reports, and cause confusion.

The fix:

We align VAT quarters with your year-end for cleaner, simpler, stress-free accounting.

VAT DIRECT DEBIT

NOT JUST ANOTHER ACCOUNTANT

HMRC collects automatically, No stress

Direct Debit gives three extra working days and prevents missed payments. It keeps filings counted on time, avoids penalties, and removes a costly mistake the Tax Man loves.

PLACE OF SUPPLY

Buying software or services from abroad?

The Tax Man still wants his cut

You buy digital services globally. Software from the US. Fonts from Europe. Stock images from international platforms. Place of supply rules determine how VAT applies.

Buying from non-UK suppliers (B2B)

Reverse charge applies. The supplier doesn’t charge VAT, so you account for UK VAT in Box 1 and Box 4. If reclaimable, it usually nets to zero. Always check invoices match registration.

In practice

Invoices from overseas show no VAT. You calculate 20% and record it in Box 1 and Box 4. Not VAT registered? Pay the full amount. Simple before, complex after registration.

Buying from platforms (B2C)

Platforms like Adobe or Canva charge VAT automatically. You reclaim it through your return. The 20% VAT is included, so no reverse charge applies, just keep records.

The trap

Get the reverse charge wrong and HMRC will flag it. Missing VAT evidence raises issues. Treating B2B as B2C means paying VAT you can’t reclaim. Every mistake costs.

VAT schemes

Wrong scheme = more money to the Tax Man

Pick the wrong VAT scheme and pay for it

Standard VAT

Charge 20% on sales, reclaim VAT on purchases, pay HMRC the difference. Best for high VAT expenses. Requires tracking every invoice and receipt.

Flat Rate Scheme

Pay HMRC a fixed percentage. No tracking individual purchase VAT. Simpler admin, potentially lower payments. Perfect for low-expense businesses.

First year

You get 1% off your flat rate. After that, rates vary by sector. The3Key ensures you’re classified right from day one.

CLAIM WHAT YOU CAN

Unclaimed VAT hands money to the Tax Man

If you’re VAT registered, you can reclaim VAT on genuine business expenses, only with proper documentation and business use.

What creatives can typically reclaim VAT on:
Software subscriptions and licenses
Computer equipment and hardware
Office supplies and stationery
Marketing and advertising costs
Website hosting and domain fees
professional development
Office Rent and Utilities
Travel for business purposes
What creatives Can’t reclaim on:
Personal expenses
Client Entertainment
Items for partial personal use
Holidays and leisure travel
Fines and penalties
Gifts and giveaways
Fines and penalties
Gifts and giveaways