VAT Return Filing

Filing VAT returns involves reporting the VAT you’ve charged on sales (output VAT) and the VAT you’ve paid on purchases (input VAT). Most businesses file quarterly, although annual or monthly options exist under certain schemes. 

Your VAT return covers Boxes 1 through 9: output VAT, input VAT, acquisitions from the EU, adjustments and net VAT payable or reclaimable. You complete returns via Making Tax Digital-approved software and submit them online. The filing deadline is one month and seven days after the end of each VAT period. Missing this deadline can trigger automatic penalties and interest charges, so setting reminders and maintaining tidy records is crucial.

After submission, you must pay any VAT due by the same deadline. Payment methods include direct debit, bank transfer, and HMRC online services. If your input VAT exceeds output VAT, HMRC refunds the difference directly to your bank account. 

In addition to standard returns, some businesses use the Flat Rate Scheme, Annual Accounting or Cash Accounting Scheme, each of which alters how you calculate and report VAT. Choosing the right scheme impacts your cash flow and administrative burden. Accurate preparation and timely filing of VAT returns keep you compliant and minimise the risk of HMRC enquiries.