VAT Direct

VAT Direct is a UK tax-filing and recordkeeping service for businesses and individuals who need to submit VAT or Self Assessment returns. It is most compelling for smaller businesses that want free filing or a cash-basis online cashbook; the free records service’s 500-transaction cap and cash-basis requirement narrow its appeal.

Overview

Built on the Exedra platform, VAT Direct combines return submission with optional digital recordkeeping. Spreadsheet users can send VAT data from CSV files without replacing their accounting system, while businesses wanting a place to keep records can use its cloud cashbook for VAT and Self Assessment.

That split makes it useful both as a filing bridge and as a lightweight bookkeeping option. The free cashbook is more restrictive: it supports cash-basis accounts only and is limited to 500 transactions per period. Businesses that need standard VAT accounting or exceed that volume should consider premium services or another product.

Key features

• VAT and Self Assessment: VAT calculation and return filing are supported, and the Basic service includes free bridging for VAT and Income Tax Self Assessment. This suits users who need a route to submit returns without moving their existing accounting workflow.
• CSV submissions: Spreadsheet-generated or system-generated CSV files can supply VAT return data. That is a practical advantage for businesses already maintaining records elsewhere.
• Online cashbook: The cashbook keeps VAT and Self Assessment records and supports both cash-basis and standard VAT accounting. The broader accounting support is useful, though the free digital-record service is restricted to cash basis.
• Scheme and payment coverage: Supported VAT schemes include Flat Rate, retail and margin schemes, traditional VAT, EC VAT and the Domestic Reverse Charge; CIS payments are also tracked. The range gives businesses with varied VAT arrangements more flexibility than a basic filing-only bridge.
• Bank data and API: Open Banking can load statements into the cashbook across multiple bank, cash and credit card accounts. An API can provide bank statement and HMRC tax information, with an authorisation token obtained after login. These tools may help users connect records and tax data, while making the service more relevant to API users as well as web users.
• Security and privacy: The service says it uses anti-fraud headers and offers optional two-factor authentication by text message or a similar method. Its privacy notice says data is processed in the UK and that third parties do not access personal data unless the law allows it. Cirrostratus Exedra Ltd says it is registered with the Financial Conduct Authority for payment services as an account information service provider.
• Taxonomy limitation: The cashbook does not handle FRC Taxonomies, a material constraint for businesses that depend on them.

Pricing

Basic service — free. It includes free bridging for VAT and Income Tax Self Assessment, plus digital records for businesses below the VAT threshold. The records are limited to 500 transactions per period and cash-basis accounts. It is a good starting point for smaller businesses whose accounting basis and activity fit those boundaries, but the cap and basis restriction rule it out for some growing or more complex operations.

Premium services — custom pricing. These include some Open Banking, Making Tax Digital and other services; contact the provider for details. This is the route to investigate if the free service does not cover your needs, though the cost should be weighed against the requirements before committing.

Platforms

VAT Direct is available on the web and through an API. Its bank-data API and HMRC tax information make the API relevant to integrations, while the web service covers filing and cashbook use.

Who it's for

VAT Direct is best suited to UK businesses seeking free VAT or Income Tax Self Assessment bridging, or smaller businesses below the VAT threshold that can work within the free cashbook’s cash-basis and 500-transaction limits. It can also suit spreadsheet users who want to retain their current accounting system while submitting VAT data. Businesses needing FRC Taxonomies, more than 500 transactions per period on the free records service, or standard-basis records under that free service should look elsewhere or ask about premium services.

Pros and cons

• Pro: Free bridging covers both VAT and Income Tax Self Assessment, giving users a no-cost filing route for those returns.
• Pro: CSV submissions let spreadsheet users keep their existing accounting setup rather than replace it.
• Pro: The cashbook supports a broad set of VAT schemes and multiple bank, cash and card accounts, with bank and HMRC information also available through an API.
• Con: Free digital records require cash-basis accounts and stop at 500 transactions per period, limiting the service for higher-volume businesses.
• Con: The cashbook does not support FRC Taxonomies.
• Con: Premium services have custom pricing, so users must contact the provider to establish the cost.

Alternatives

For more options, browse VAT Software.

• LOVAT is another freemium option with web, mobile and API platforms, a free plan and a free trial; its Free plan includes one data-import integration.
• Vatstack is a freemium API and web alternative whose Developer plan offers unlimited quotes, dummy validations and dummy supplies for free for life.
• VAT Sense is an API-only freemium alternative, with a Free tier offering 100 requests per month and a Basic tier offering 2,000 requests per month for €11.99/mo or €115.10/yr.
• VATlayer is an API-only alternative; its free tier allows 100 requests per month for non-commercial use, while Basic raises that to 1,000 API requests per month.
• Kintsugi is an API-only freemium alternative with a free plan focused on global nexus monitoring, exposure and historical liability auditing, and risk assessment.
• BTCHub is a paid alternative for macOS, web and Windows, priced at £275 a year, with MTD VAT filing to HMRC, group and consolidated VAT, and Excel and bookkeeping import.
• VAT MTD is a freemium alternative for iOS and macOS with a free trial and single-VAT-number plans priced at £9.49 a month or £17.99 per quarter.
• Kleos is a paid Android and iOS alternative with per-user plans and cloud storage.

Verdict

Choose VAT Direct if you want free VAT or Income Tax Self Assessment bridging, need to submit spreadsheet-based VAT data, or can keep a small business’s records within the free cash-basis limit. Its combination of filing, a scheme-aware cashbook and bank-data tools is useful, but the 500-transaction ceiling, cash-basis restriction and lack of FRC Taxonomies make it a poor fit for businesses outside those bounds.