You used to hold the VAT, and then you did not
Reverse Charge Cash Flow Calculator
Before March 2021 you held the VAT until the return fell due. On £25,000 a month that was about £13,700 of working capital.
Reverse Charge Cash Flow Calculator
Before March 2021 you collected the VAT on every invoice and held it until the return fell due. It was never your money, but while it sat there it did the job of an overdraft, for nothing.
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What to do about it
If your sales are mostly reverse charged and you still pay VAT on materials, you are probably in a repayment position every quarter. Monthly returns get that money back three times as often.
The average balance is the VAT arising each month multiplied by half the return period plus the payment lag. On quarterly returns that is about 2.7 months of VAT.
If you have not repriced since March 2021, your quotes are still assuming working capital that is no longer there.
The same sum, in a workbook
With the monthly against quarterly comparison and the loss expressed in weeks of running costs.
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We provide bookkeeping, VAT returns, payroll, tax filings, annual accounts, and advisory services — tailored to freelancers, SMEs, and ecommerce businesses.
Yes. Every client works with a named accountant who knows your business inside out. You’ll never deal with call centres — just direct, personal support.
We’re certified partners with Xero and QuickBooks. Our digital-first approach means you’ll always have real-time access to your financial data.
We offer fixed monthly packages with no hidden fees. Pricing depends on your business size and the level of support you need — but you’ll always know exactly what you’re paying for.
Absolutely. We handle VAT, corporation tax, self-assessments, and payroll tax. We also manage HMRC correspondence on your behalf to ensure you never miss a deadline.
No. While many of our clients are London-based, we also support businesses across the UK and ecommerce sellers worldwide through our cloud-based systems.
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