Why check VAT numbers are correct?

24 May 2023

Since the UK left the EU back in 2020 HMRC introduced an online VAT number checker service to replace the old VIES system. You can enter the VAT registration number of your supplier or customer into the system to check if it is a genuine VAT number. If it is, the system will reply stating "Valid UK VAT number" as well as supply the trading name and registered business address. This response is dated and timed which means you can print and or save the result for your records to use as proof that the VAT number was valid at the time of your search. In addition, you can also tick a box and HMRC will supply a separate certificate of the valid VAT result, however you will need to enter your own VAT registration number in order to get this certificate. This can be used as evidence to show when you checked if a company had a valid VAT number should HMRC challenge input tax recovery or try to get payment back from lost VAT. 

 

If you have a new customer or supplier, who has recently registered for VAT there may be a delay and therefore their number might not show up on the system, this can also be the case if a business has recently changed some of their details e.g. address, HMRC will be updating its records and it may therefore also not show up as valid. 

 

If you do not get a response from the HMRC VAT service you can go back to your customer or supplier and ask for evidence to prove they are VAT registered such as a copy of their VAT registration certificate which is issued directly from HMRC.

 

It is important to annually check VAT if your sales are subject to reverse charge declaration instead of charging VAT on your sales invoices just incase they have deregistered without letting you know. 

 

Claiming VAT without a valid VAT number can lead to HMRC rejecting your claim! Not only could this mean your left paying a bill but you'll also have to deal with the admin to sort out the error. 

 

HMRC's online VAT checker service link 

MTD for Income Tax: What trades and construction businesses need to know

by PH186232 • 30 July 2025
If you're a sole trader or landlord earning over £50,000 a year, big changes are coming your way. From April 2026, you'll need to comply with Making Tax Digital for Income Tax (MTD for ITSA) and while that might sound like it's a long way off, it’s closer than it seems. At Books and Business, we work closely with those in the trades and construction sector, and we know that admin is rarely top of the to-do list when you're running jobs, managing quotes, and keeping customers happy. But this change will affect how you keep records and report your income, so starting early is key. What’s Changing? Under MTD, if your income is over £50,000, you’ll need to: Keep digital records Submit quarterly updates to HMRC using MTD-compatible software File a final year-end statement alongside your usual return And that’s just the start, the income threshold will drop to £30,000 in April 2027, meaning even more sole traders will be brought into the fold. How does this affect you? Let’s be honest, this adds another layer to the already time-consuming admin. If you’re currently filing a Self Assessment once a year, you'll now be reporting four times a year plus a final return. That’s a big shift, especially if you’re used to doing things manually or handing it all over once a year. But there’s a silver lining: the right digital tools (and a good bookkeeper) can make the transition much smoother and even help you work more efficiently. Our advice to get ahead Go Digital Sooner Rather Than Later! Start using digital invoicing, receipt capture apps, and MTD-compatible software now. It’ll help reduce errors, save time, and improve your cash flow. Don’t go it alone We’re already helping trades and construction clients get ready for MTD, from choosing the right software to setting up processes that work for them. You don’t need to become a tax expert overnight as we’ve got you covered. Stay informed HMRC is releasing more details as the deadline approaches, and we’ll keep you updated with the important bits. Bottom line MTD is coming and it’s not going away. But getting ready doesn’t have to be stressful or expensive. We’re here to help you prepare in a way that fits around your business, saves you time, and avoids any last-minute scrambles. Want to know if your current setup is MTD-ready? Give us a call, we can help streamline your processes. Get in touch today and let’s get ahead of the change.

How to choose the best accounting software for MTD

by PH186232 • 22 June 2025
Making Tax Digital for Income Tax Self-Assessment (MTD ITSA) is coming, now is the time to get prepared! Whether you're a sole trader, subcontractor, or running a small limited company, choosing the right accounting software will keep you compliant and help you stay in control of your finances. But with so many options out there, how do you choose the best MTD software for your business? Here are some key features to look for: HMRC Compatibility The most important feature is that the software you choose is MTD compliant. It should link directly with HMRC so you can send updates digitally as well as meet other MTD obligations. Ease of Use Your time is best spent on-site, not buried in admin. Choose software that’s straightforward and suits your level of accounting knowledge. Look for mobile apps and dashboards that give you access on the go. Automation & Reporting The best systems will save you time by automating recurring tasks, like invoicing, expense tracking, and mileage logs as well as offering clear reports to help you understand where your money's going. Pricing & Scalability Think about where your business is headed. Can the software grow with you? Choose a platform that fits your budget now, but also supports features like payroll, CIS returns, or multiple users down the line. What are the most popular software options: QuickBooks – A popular option for trades and small business owners, offering strong mobile tools and CIS features. Xero – Great for real-time visibility, simple bank feeds, and job costing add-ons. FreeAgent – Perfect for sole traders and subcontractors, especially those who like things kept simple. Sage – Well-established and ideal if you’re looking for a more traditional setup with solid support. You’ve chosen the software but why make the switch now If you’re still using spreadsheets or a paper-based system, we cannot stress enough that now is the time to go digital . Getting ahead of the MTD deadlines gives you time to learn the software, avoid penalties, and work out any teething problems before submissions are mandatory. A quick note to be aware ...... some banks now include accounting software when you open a new business account. However, it’s advisable to do your research first to ensure the software they are offering meets your business needs. We can help with your MTD journey; we offer a variety of packages to suit each individual’s needs, from basic set up to regular training or just ad hoc training on any areas you may be getting stuck with, we also offer full packages where we can do it all for you. Get in touch for more information.

Homebuyers in Stamp Duty Sprint Before April Hike

by PH186232 • 20 February 2025
With the 1st April deadline looming, its reported that 550,000 homebuyers are racing to complete purchases before stamp duty jumps back to its 2022 levels. We have read that sales awaiting completion are up 25% from last year, with an average five-month wait putting pressure on buyers to beat the deadline. Currently, first-time buyers pay no stamp duty on homes up to £425,000 when purchasing a property worth up to £625,000, but from 1 st April, that drops to £300,000. The upper limit will also fall from £625,000 to £500,000. It's not just the first-time buyers taking a hit, currently stamp duty is only owed on amounts over £250,000, however from 1 st April, only the first £125,000 will be exempt. Despite the cost increase, it looks like most buyers are still pressing ahead, with some even renegotiating offers to offset the hike. According to our research, regardless of the impending cost increases, property experts such as Rightmove are predicting the demand to stay strong; especially if interest rates continue to fall. With mortgage rates already dipping below 4%, we believe buyers remain hopeful for a more affordable market ahead.