VAT Returns
Once your business is VAT-registered, you must submit a VAT return to HMRC every quarter (or month), reporting the VAT you have charged and the VAT you can reclaim. Since Making Tax Digital, these returns must be filed through compatible software — spreadsheets alone no longer qualify. Our London accountants prepare and file accurate, MTD-compliant VAT returns on your behalf, so you stay compliant and never overpay.
What a VAT return covers
A VAT return summarises your output VAT (the VAT you have charged on your sales) and your input VAT (the VAT you have paid on your purchases) over the period. The difference is what you owe HMRC — or, if your input VAT is higher, what HMRC owes you. Each return must be filed and any payment made by the deadline, usually one month and seven days after the period ends.
Accurate record-keeping is essential: every sales invoice and every purchase receipt must be correctly categorised, and the VAT on each must be recorded at the right rate. Errors are common and can lead to underpayments, overpayments and HMRC assessments.
How we prepare your VAT returns
Using your up-to-date bookkeeping data, we calculate the output and input VAT for the period, reconcile the figures against your bank and accounting records, and prepare the return for your review. Once you approve it, we submit it directly to HMRC through MTD-compliant software.
We also manage your payment deadlines, telling you clearly how much VAT is due and when, so you never miss a payment or incur a default surcharge. And because your books are kept current throughout the period, your VAT return is quick and inexpensive to prepare.
Making Tax Digital compliance
Making Tax Digital for VAT requires digital record-keeping and software-to-software filing. We ensure your accounting software is set up correctly and that every return is filed through a compliant route, so you meet HMRC’s requirements without having to understand the technical detail yourself.
Frequently Asked Questions
How often do I need to file a VAT return?
Most businesses file quarterly, though monthly returns are also possible. We align our service to your VAT return period.
What is Making Tax Digital?
MTD requires VAT-registered businesses to keep digital records and file returns through compatible software. We handle the technical side so you stay compliant.
What happens if I file or pay late?
HMRC applies a default surcharge and interest for late filing or payment. We track your deadlines and file early so you never incur one.
Can you reclaim VAT on all my purchases?
We reclaim VAT on every qualifying purchase, while correctly excluding non-deductible items such as entertainment, so your return is accurate and compliant.
Do I need separate bookkeeping for VAT?
No — your day-to-day bookkeeping feeds directly into your VAT return. Keeping your books current makes each return quick and accurate.