Introduction
If your business is VAT-registered in the UK, you’re legally required to submit VAT returns to HMRC — usually every quarter. Filing your VAT return on time not only keeps you compliant but also helps you avoid costly penalties and interest.
In this guide, we’ll walk you through exactly what a VAT return is, what you need before you start, and a step-by-step process for filing it correctly.
What is a VAT Return?
A VAT return is a report you submit to HMRC showing:
- The VAT you’ve charged on your sales (output tax)
- The VAT you’ve paid on your purchases (input tax)
The difference between the two tells you whether you owe VAT to HMRC or can reclaim it.
In 2025, the VAT registration threshold in the UK is £90,000 in taxable turnover.
What You Need Before You Start
Before filing your VAT return, gather the following:
- Sales invoices and receipts
- Purchase invoices and receipts
- Details of any imports or exports
- Your Government Gateway login details
- Access to your accounting software (if you use one, such as Xero or QuickBooks)
Step-by-Step: How to File a VAT Return
Step 1: Log in to HMRC or Your Accounting Software
Go to the HMRC Government Gateway and log in, or open your MTD-compatible accounting software.
Step 2: Locate the VAT Return Section
In HMRC, navigate to your VAT account and choose the period you want to file.
Step 3: Enter Your Sales Data (Output Tax)
Add the total sales figure for the period, excluding VAT, and the total VAT you’ve charged customers.
Step 4: Enter Your Purchases Data (Input Tax)
Include the total purchases figure and the VAT you’ve paid to suppliers.
Step 5: Review and Confirm
Check the calculations carefully. The system will show whether you owe HMRC or are due a refund.
Step 6: Submit and Save Confirmation
Once you submit, download or save the confirmation for your records. Remember, HMRC requires you to keep VAT records for 6 years.
Common Mistakes to Avoid
- Forgetting to include eligible business expenses that allow VAT reclaim.
- Mixing up figures with VAT-inclusive and VAT-exclusive values.
- Missing the submission deadline — which is normally 1 month and 7 days after the end of your VAT period.
Frequently Asked Questions
Q: What happens if I file my VAT return late?
A: HMRC may apply penalties, interest, or add points to your compliance record.
Q: Can I amend a VAT return after submission?
A: Yes, but you’ll need to follow HMRC’s correction process and, in some cases, file an adjustment in the next return.
Conclusion & Call to Action
Filing a VAT return doesn’t have to be stressful — but it must be accurate. Whether you handle it yourself or use an accountant, staying compliant with HMRC is essential for your business.
If you’d like professional help with VAT returns, our expert team at Swift Ledger can handle the process for you from start to finish.