Small Business Accountants

How to File a VAT Return

UK VAT-registered businesses must file quarterly returns to HMRC using Making Tax Digital compatible software. Each return reports output VAT charged on sales, input VAT paid on purchases and the net amount owed or reclaimable. The standard deadline is one calendar month and seven days after your VAT quarter ends. Late submissions trigger penalty points, and reaching the threshold results in a £200 fine.

By Jordan Macey MAAT Reviewed by Noor Fiaz Updated 16 Apr 2026 6

Key takeaways

Most UK businesses must file VAT returns quarterly using MTD-compatible software, submitting digital records of output VAT, input VAT and net VAT through their accounting platform.
The filing deadline is one calendar month and seven days after the end of your VAT period, and the payment deadline is the same date for electronic payments.
Each VAT return has nine boxes covering VAT on sales, VAT on purchases, total VAT due, VAT reclaimed, net VAT payable or reclaimable, and total values of sales and purchases.
HMRC operates a penalty points system for late VAT returns introduced in January 2023, where each missed deadline adds one point and reaching the threshold triggers a £200 penalty.
Errors under £10,000 or 1% of your Box 6 figure (capped at £50,000) can be corrected on your next return, while larger errors require a separate disclosure using form VAT652.

Filing a VAT Return

Submitting your VAT return can be a challenging task, especially for those who are new to it. However, it is an essential part of running a business that cannot be ignored. In this guide, you will have a clear understanding of how to submit VAT return accurately and confidently. Whether you're a small business owner or a financial professional seeking clarity, we've got you covered.

What is a VAT Return?

A VAT return is a document you must send to HMRC to report the amount of Value Added Tax (VAT) you've collected and paid, and total sales and purchases for a specific period. This report helps the government keep track of your VAT transactions and determine the amount of VAT you owe or are owed. VAT-registered businesses, including small ones, must submit returns to tax authorities on a monthly, quarterly, or annual basis, depending on turnover. This digital process involves submitting returns online using compatible software through the government gateway account.

How is VAT Calculated?

Value Added Tax (VAT) is a consumption tax levied on the value added at each stage of the supply chain. It is essential to understand how VAT is calculated to ensure that your business meets its tax obligations accurately. Let's break down the process step by step:

1. Identify Output VAT: Output tax is the VAT you charge to your customers on your goods and services. This is the amount you collect on behalf of HMRC. It's crucial to correctly calculate the VAT rate applicable to each transaction, as different goods and services may have different VAT rates.

2. Determine Input VAT: Input tax, on the other hand, is the VAT you pay when you purchase goods and services for your business. This includes VAT paid on supplies, such as equipment, inventory, and services. It's important to keep detailed records of these transactions to claim back the input tax you've incurred.

3. Calculate the Difference: To find the amount of VAT you owe to or can reclaim from HMRC, subtract the total input tax (VAT you've paid) from the total output tax (VAT you've charged your customers). This calculation reflects the VAT liability you must report.

Output VAT - Input VAT = Amount of VAT owed to HMRC

Pro Tip: Skip the Hassle of Manual VAT Calculations! Use our online VAT Calculator to get accurate results in seconds.

How Do I Get a VAT Number for My Company?

To become VAT registered, create a VAT online account, which is also referred as a Government gateway account.

Mostly within 30 days of VAT registration, you will get a VAT certificate which includes your VAT number. For online VAT registration, your VAT certificate and company VAT number will be sent to your VAT online account.

Follow our detailed UK VAT registration guide to get your VAT number.

When should I File a VAT Return?

You need to submit your VAT return one month and seven days after the end of your VAT period which occurs every 3 months (quarterly). It means you need to submit the VAT return 4 times a year. You can find when your VAT returns are due through your VAT online account.

If you’re registered for VAT, you must submit a VAT Return even if you have no VAT to pay or reclaim.

How Often Do I Need to File a VAT Return?

Most businesses usually need to submit quarterly VAT returns every 3 months at the end of the accounting period. You’ll need to specify the dates of your accounting period on your VAT Return, for example, 1 January to 31 March.

If you’re registered for VAT, you must submit a VAT Return even if you have no VAT to pay or reclaim.

What to Include in a VAT Return?

Total sales and purchases
Amount of VAT owed
Amount of VAT you can reclaim
Amount of VAT you owe for business expenses

How Do I Submit a VAT Return?

There are 4 methods to submit your VAT return:

Using accounting software like Freeagent that is compatible with Making Tax Digital
Appointing an agent or a small business accountant
Using your VAT online account - only if you use the VAT Annual Accounting Scheme
Submit your return by post only if you have an exemption from Making Tax Digital for VAT

MTD for VAT

From 1st April, 2022, Making Tax Digital (MTD) for VAT is a mandatory requirement for most businesses. It requires you to keep digital records and submit your VAT return using MTD compatible accounting software.

File VAT Return Online

To submit VAT return online, log in to your government gateway account using the government gateway user ID.
Ensure you have compatible software that complies with Making Tax Digital.
Prepare necessary documentation, including sales invoices, purchase invoices, bank statements, VAT registration details, and VAT return calculations.
Enter VAT return information, review it for accuracy, and submit it online following software instructions.

VAT Return Deadline

The deadline for submitting your VAT return online is usually 1 month and 7 days after the end of your accounting period. This is also the deadline for paying HMRC. You need to allow time for the payment to reach HMRC’s account.

Payment Date for VAT

For businesses that pay their VAT monthly or quarterly, the deadline for paying the VAT you owe is 1 month and 7 days after the end of the VAT period. You must pay VAT to HMRC electronically, for example through Direct Debit, through debit or corporate credit card or internet banking.

Late VAT Return or Payment Penalty

For missed VAT return deadline, HMRC will send you a ‘VAT notice of assessment of tax’ telling you how much VAT they think you owe. For each late VAT return submission including nil return, you’ll be issued a penalty point. Once you reach your penalty point threshold, you’ll get a £200 penalty.

For missed payment deadline, penalty is charged based on how late you pay.

Ready to Submit VAT Return with Confidence?

At GoForma, we specialize in helping small businesses manage their finances, including VAT compliance. Our experienced team of accountants ensures that your VAT returns are accurate, on time, and free from penalties. Check out our Google and Trustpilot reviews to see what our clients have to say about our services and excellence.

Don't let VAT return complexities overwhelm you. Book a free consultation today, and let's work together to ensure your VAT compliance is stress-free and error-free. Hire GoForma's small business accountants and experience peace of mind in managing your finances.

Frequently asked questions

How do I file a VAT return online in the UK?

You file a VAT return using MTD-compatible accounting software such as FreeAgent, Xero or QuickBooks. The software connects to HMRC through the Making Tax Digital API. You enter your sales and purchase figures, the software calculates VAT in each of the nine boxes, and you review and submit directly to HMRC. You need a Government Gateway account linked to your VAT registration before you can submit.

When is the deadline for filing a UK VAT return?

The deadline is one calendar month and seven days after the end of your VAT accounting period. For example, if your quarter ends on 31 March, your return and any payment are due by 7 May. You can check your exact due dates by logging into your HMRC online account. If the deadline falls on a weekend or bank holiday, your submission must reach HMRC by the last working day before it.

What information do I need to complete a VAT return?

You need records of all sales invoices issued, purchase invoices received, any credit or debit notes, import and export documents, and your bank statements for the period. From these records you calculate output VAT on sales, input VAT on purchases, the net amount payable or reclaimable, and the total values excluding VAT. Digital records must be maintained under MTD rules.

What are the nine boxes on a VAT return?

Box 1 is VAT due on sales. Box 2 is VAT due on acquisitions from EU member states. Box 3 is total VAT due (sum of boxes 1 and 2). Box 4 is VAT reclaimed on purchases. Box 5 is net VAT to pay or reclaim. Box 6 is total sales excluding VAT. Box 7 is total purchases excluding VAT. Box 8 is total supplies to EU states, and Box 9 is total acquisitions from EU states.

Do I still need to file a VAT return if I had no sales?

Yes. If you are VAT registered you must submit a return for every period even when you have had no sales or purchases. This is called a nil return. Failing to submit a nil return will add a penalty point to your record. You may still be able to reclaim input VAT on business expenses during a nil-sales period, so it is worth checking your purchase invoices before submitting.

What happens if I file my VAT return late?

HMRC uses a penalty points system introduced in January 2023. Each late submission adds one penalty point to your record. For quarterly filers the threshold is four points, and once you reach it you receive a £200 penalty for that return and every subsequent late return until you bring your record up to date. Points expire after a period of compliance, which is 12 months for quarterly filers.

How do I correct an error on a VAT return I already submitted?

If the net error is below £10,000 or is between £10,000 and £50,000 and does not exceed 1% of your Box 6 figure, you can adjust it on your next VAT return. For larger errors you must notify HMRC separately using form VAT652. Always correct errors promptly because HMRC may charge interest on any underpaid VAT and could issue penalties if the error appears deliberate.

Is Making Tax Digital mandatory for filing VAT returns?

Yes. Since April 2022, all VAT-registered businesses must keep digital records and file returns through MTD-compatible software. The only exceptions are businesses or individuals granted an exemption by HMRC, for example on grounds of disability, age, remoteness of location or religious objections to using electronic communications. If you have an exemption you can submit returns through your VAT online account instead.