That ethos is at the heart of the latest episode, ‘Your First VAT Return: Myths, Mistakes & HMRC Scrutiny’, where Rachael, Managing Director of Chadwick Accountants, is joined by accountant Charlie Watson to unpack one of the most misunderstood milestones for growing businesses.
“Your first VAT return isn’t just a number, it’s your first impression with HMRC. Make it count,”
Rachael explains, setting the tone for a frank discussion about why this seemingly routine submission often attracts far more attention than business owners expect.
One of the biggest surprises for listeners is just how much can be reclaimed and how easily it can go wrong. As Rachael outlines, businesses can reclaim VAT on goods purchased up to four years before registration, and services up to six months prior. But, as she warns,
“You’re not just reclaiming VAT, you’re raising your hand and saying, ‘Please check this.’”
Sometimes HMRC ask for your top ten invoices. Other times, they want everything, every transaction, down to the last penny. The episode also highlights how increasingly strict HMRC has become.
“If an invoice is in your personal name? Disallowed. If the delivery address doesn’t match your business premises? Disallowed,”
Charlie explains, noting that even minor inconsistencies can derail a claim months later. Practical advice runs throughout, including one standout tip that many businesses overlook, take photos of your stock on day one, date-stamped, clear, and stored safely. You’ll thank yourself later if HMRC comes knocking.
The conversation wraps with a myth-busting segment that cuts through common assumptions, including the belief that accountants can fix anything after the fact. As Rachael puts it bluntly,
“We can help — but we can’t manufacture evidence that doesn’t exist. We’re accountants, not magicians.”
The takeaway is clear: proactive advice, proper documentation, and getting things right from the start make all the difference. The full episode of For Finances Sake is available now on Spotify and all major podcast platforms.
