Filing Your VAT Return: A Step-by-Step Guide
Filing your VAT return is a quarterly requirement for most VAT-registered businesses. Understanding the process and getting it right is essential for compliance.
**What information do you need?**
To file your VAT return, you need to know the total VAT-exclusive value of your supplies, the VAT charged on those supplies, the total VAT-exclusive value of your acquisitions (if you're registered for VAT in the EU), and the VAT you've paid on your business expenses. Your accounting records should provide all this information.
**The nine boxes**
The VAT return consists of nine boxes. Boxes 1 to 3 relate to VAT you've charged (output tax), boxes 4 to 6 relate to VAT you've paid (input tax), and boxes 7 to 9 relate to the value of supplies. Most businesses only need to complete boxes 1 to 6 and box 7.
**Submitting your return**
You must submit your VAT return online through HMRC's portal. The deadline is usually one month after the end of your VAT period. If you owe VAT, you must pay it by the same deadline. If you're due a refund, HMRC will process it, though this can take several weeks.
**Common mistakes**
Many businesses make errors on their VAT returns, such as including personal expenses or failing to adjust for VAT-exempt supplies. Another common mistake is not keeping proper records to support the figures on the return. HMRC can ask for evidence of the figures you've reported.
**Amended returns**
If you discover an error on a previous VAT return, you can file an amended return. For small errors (under £10,000), you can simply adjust your next return. For larger errors, you need to contact HMRC.
**Making Tax Digital**
From April 2022, most VAT-registered businesses must use compatible software to file their VAT returns. This is part of HMRC's Making Tax Digital initiative. The software must keep records and file returns automatically, reducing the risk of errors.
**Learn more:** For professional guidance on this topic, visit [Accounted For Ltd](https://accountedforltd.co.uk/vat).
Learn more: For professional guidance on this topic, visit Accounted For Ltd