What is a VAT return?
A VAT return summarises the VAT your business has charged on sales and the VAT it has paid on eligible business purchases during a VAT accounting period.
The figures are used to determine how much VAT is payable to HMRC or whether your business may be due a repayment.
Good to know
Keeping accurate digital VAT records throughout the accounting period makes preparing and reviewing your return significantly easier.
Who needs to submit VAT returns?
Businesses registered for VAT generally need to prepare and submit VAT returns for each required accounting period.
Your filing responsibilities depend on your VAT registration and accounting arrangements, so it is important to keep your records organised and understand the requirements that apply to your business.
- ✓VAT-registered limited companies
- ✓VAT-registered sole traders
- ✓Businesses using an applicable VAT accounting scheme
- ✓Businesses maintaining VAT records through compatible digital software
Making Tax Digital for VAT
Making Tax Digital has changed the way many businesses maintain VAT records and submit information to HMRC.
Using compatible accounting software can help reduce manual errors, maintain a clearer audit trail and make preparing VAT returns more efficient.
Understanding your VAT deadlines
Your specific VAT filing and payment dates depend on your VAT accounting period.
Checking your deadlines early and maintaining up-to-date bookkeeping throughout the period can reduce last-minute pressure and help avoid unnecessary filing problems.
Common VAT return mistakes to avoid
Small errors can create unnecessary complications when preparing a VAT return. Good bookkeeping and a consistent review process can help reduce the risk.
- ✓Using incorrect VAT figures
- ✓Missing or incomplete invoices
- ✓Poor record keeping
- ✓Incorrect treatment of VAT on purchases
- ✓Leaving preparation until close to the deadline
How professional VAT support can help
An accountant can help review your records, prepare the VAT return, identify potential issues and support compliant submission.
This can be particularly useful where transactions are more complex or your business is unsure about the VAT treatment of particular income or expenses.
