Do you find it hard to make sure your VAT returns are submitted on time and still worry about errors?
If you have VAT reporting in the UK, you must submit your VAT returns to HMRC every time they are due. About once every three months, you have to complete a VAT return that shows the VAT you’ve received from your sales and that you have spent on VAT-rated expenses. The amount of VAT you need to give or reclaim depends on the distinction between the two values.
Making sure VAT returns are correct, complete and submitted in time is mainly the job of business owners, finance professionals and accountants. The MTD rules state that VAT-registered businesses should store their records digitally and use proper software to submit their returns.
The fact is, several businesses, especially small and medium companies, face problems with strict filing deadlines, not enough information included and new rules from HMRC. Consequently, these issues may cause businesses to provide information or deliver payments late, report things incorrectly or neglect compliance duties. Submitting incorrect VAT returns exposes a business to too much risk for both finances and reputation.
In this article, we’ll provide all the information you need to complete your VAT return preperation. By meeting submission deadlines, being organised, using the appropriate software, preventing frequent mistakes and having knowledge about outsource VAT services, this guide helps you remain compliant and relaxed.
Submitting your VAT returns with complete accuracy and correctly on time involves organised handling. Each action, such as making sure key dates are met and regularly checking and arranging records, plays its part in making things accurate and avoiding getting fines. Here, we explain some vital ways VAT-registered UK businesses can simplify the process of their VAT returns.
Usually, UK businesses file VAT returns every quarter, but some must file them each month or just once a year based on their size and the chosen VAT scheme. Understand your particular deadlines before doing anything else so you remain compliant.
You should submit your VAT return and make any tax payments you still owe by the end of the next calendar month, plus seven days from when your previous VAT period finishes. For example, when your VAT quarter ends on 31 March, you need to submit the return and pay by the due date of 7 May.
Failing to meet these deadlines may mean you have to pay fines, so you should be organised. One method is to use either digital calendars, reminders that are sent by email or an app or software that will remind you when things you need to do are approaching. With these tools, it becomes less likely to file late, and VAT reporting is smoother.
Here’s a table for VAT return periods and due dates for the UK 2025-26 tax year:
To prepare your VAT returns correctly, you must always have organised and complete records. The rules mean that businesses must digitise their records and use approved software to send in their VAT returns.
Maintaining detailed and recent records is very important, which includes:
The invoices should show the VAT charge that was added.
Buy products from suppliers who have paid VAT on the invoice.
Related documentation for business transactions that happen cross-country
Credits are used for refunds and discounts that are due to the customer.
Working on these records as events happen keeps you from erroneous VAT reporting that sometimes occurs when invoices are missing. Proper data entry regularly makes it simpler for you to reconcile and file, since there is less possibility of making mistakes.
It means making sure that the VAT amounts recorded by your business match the ones seen on invoices, receipts and bank statements. Rather than waiting three months, reviewing the books every month allows you to discover any mistakes faster.
Performing this monthly process assists in noticing common errors, such as:
Some invoices are missing or appear twice.
VAT was mistakenly applied such as a standard rate instead of a zero rate.
Goods or services being put in the wrong VAT category.
If you regularly fix any errors, you won’t face difficulties when you have to file your VAT return. Postponing your VAT review until the end of the quarter may cause errors to go unnoticed, raising the chances of making incorrect reports or being late.
As of April 2019, UK law requires almost all companies that register for VAT to use online software for their records and for filing VAT. Its purpose is to improve the accuracy of reporting, cut down on errors and simplify the process of reporting VAT.
You should search for digital solutions that contain important features for VAT management:
Automated VAT Calculations: Automation of VAT so that potential errors caused by manual input are avoided.
Direct HMRC Filing Support: You can submit your VAT returns directly with HMRC help, so you do not need to access the HMRC portal aside from submitting the form.
Real-time VAT Tracking: A solution that helps you observe and manage your VAT consequences as you process transactions
A number of UK businesses use Xero, Sage Business Cloud Accounting and QuickBooks Online as compliant accounting programs. These solutions come with easy-to-use interfaces, fully automatic VAT services and integration with different financial programs.
Try to use software that is able to interact with your bank and the HMRC directly. Once integrated, all your money matters enter the system without effort, almost no manual data is needed, and you can submit your VAT forms as required.
Before you send your VAT return, make sure to review and check all your numbers carefully. A thorough investigation at the closing stage can stop small errors from causing penalties or audits.
Pay attention to checking:
To make certain tax rates are used properly, VAT codes are needed when buying and selling.
Ensure items which are exempt are correctly left out of the VAT calculation.
Exports and imports between the EU and another country can have particular VAT rules applied after Brexit.
Any actions needed, for example, bad debt relief, partial exemption adjustments or having to input amounts manually
If you can, let an accountant or a VAT expert go over the details of your VAT processes. Extra consideration can allow you to spot any errors you might have missed.
Misunderstanding the system or hurrying things are the main reasons behind many VAT errors. Avoiding these things can keep your company from facing serious problems.
Many businesses often make the following VAT return errors:
Confusing gross and net Amounts: This occurs when a company adds VAT on their gross sales instead of just the net sales as required
Wrong VAT classifications: Earlier, merchants often misclassified goods and services, which resulted in incorrect VAT payments.
Late filing or payment: If deadlines are missed, the business must pay penalties and interest, and if this happens often, the agency might increase enforcement steps
Claiming input VAT on ineligible items: When you claim input VAT for things that are not suitable for it, HMRC can look into your affairs.
Errors on tax forms may lead to having to pay fines, undergo lengthy audits, get more attention from the UK tax authorities and experience difficulties with cash flow. If you are accurate and on time, you will stay on the right side of the law and preserve your business’s good image.
As MTD is in use, most UK businesses use MTD-compliant software to submit their VAT returns online. VAT can be filed more smoothly, quickly and accurately thanks to this digital method, and there are fewer chances for mistakes.
Here are the steps you will take to file your VAT return online:
A. Prepare: Get all required financial information together and confirm your VAT processes results in your accounting tool.
B. Review: Go over the return one more time to be sure everything related to sales, purchases and adjustments is accurately listed.
C. Submit: Your MTD-compatible software should allow you to send your VAT return filing straight to HMRC. Making this step is easy; users just click a few times, as there is no need to use paper or the main online HMRC site.
D. Pay: Set up a payment for any amount of VAT yourself, using direct debit, transfer or online platforms before the date given.
E. Confirm: After you have submitted your tax return, HMRC will send a confirmation digitally. Copy this confirmation to keep it as proof that you have filed your income tax.
It is advisable to keep the confirmation of your submission and a tidy bundle of all VAT records. If HMRC reviews your activities in the future, this documentation will be useful.
VAT return preperation is not easy for many businesses because of the many VAT rules, the accuracy required and the urgency in filing. In many situations, having too few VAT experts or being too busy drives companies to turn to specialists instead.
Usually, outsourcing VAT means that you pay a third party to handle these services:
Recordkeeping: Properly and right away add new sales and purchase records according to MTD requirements.
VAT reconciliation: Checking from time to time that the VAT reported lines up with the original transactions and documents
VAT Returns Online Filing: Clients rely on software that is fully compatible with MTD to help manage their VAT returns.
Advantages of outsourcing VAT returns are:
Because there is oversight, there are fewer chances for errors and penalties.
Time saved allows businesses and teams to concentrate on what is important.
It becomes efficient due to the low costs from avoiding law violations and having to fix issues.
We are experts in offering UK businesses with reliable VAT services. Because our group carefully carries out VAT returns, you are always certain they will be finished correctly.
Proper and on-time submission of VAT returns prevents HMRC penalties and helps with obeying the rules. Maintaining awareness of all deadlines, storing records in digital format, using proper software, checking your VAT returns carefully and asking for help when needed will help you handle VAT easily.
Don’t let VAT returns get in the way of your business’s growth.
Our team of experts are the best choice for VAT services, offering time-saving ways, fewer errors and reliable compliance.
Get in touch with Aone Outsourcing today to receive efficient and appropriate VAT filing for your UK company. Organise your consultation now and make sure your company is always in compliance.
