How to submit a VAT return

Making Tax Digital basics

All VAT-registered businesses must keep digital records and submit returns through MTD-compatible software. Spreadsheets are allowed but only if they are linked to bridging software that submits the return digitally.

What goes in each box

• Box 1: VAT due on sales and other outputs
• Box 2: VAT due on acquisitions from EU member states (if applicable, mainly Northern Ireland post-Brexit)
• Box 3: Total VAT due (Box 1 + Box 2)
• Box 4: VAT reclaimed on purchases and other inputs
• Box 5: Net VAT to pay to HMRC or reclaim from HMRC (Box 3 − Box 4)
• Box 6: Total value of sales excluding VAT
• Box 7: Total value of purchases excluding VAT
• Box 8: Total value of supplies of goods to EU (NI only post-Brexit)
• Box 9: Total value of acquisitions of goods from EU (NI only)

Pre-submission checks

• Reconcile sales total to your accounting records and bank deposits
• Confirm purchase invoices have valid VAT numbers and the correct VAT rate
• Check Box 6 (sales excluding VAT) matches your turnover for the period
• Make sure foreign-currency invoices are translated using the right exchange rate
• Look for unusual entries — duplicate invoices, missed credit notes

What to do if you discover an error after submission

• Errors below £10,000 net (or £50,000 in some cases): correct on your next VAT return
• Errors above the threshold: submit a separate VAT error correction notice (form VAT652)
• Disclose deliberate errors immediately and proactively to reduce penalties

Filing and payment deadlines

For standard quarterly returns: one calendar month and seven days after the end of the VAT period. So a quarter ending 31 March is due by 7 May.

Pay by the same date — Direct Debit gives you a few extra working days for HMRC to collect. Late filing now uses the points-based system; see the dedicated article.