VAT return UK how to complete | Figures Chartered Accountants

Completing a VAT return in the UK is a regular task for most VAT-registered businesses. You must report your output VAT (what you charge) and input VAT (what you pay on business purchases), work out the difference, and pay or reclaim that amount. Getting it wrong can mean paying too much, reclaiming incorrectly, or facing penalties. This article explains how to complete a VAT return in the UK: what to include, how to calculate the figures, and how to submit and pay on time.

We cover the main boxes on the return, the records you need, and the Making Tax Digital (MTD) requirements. This is for VAT-registered small businesses in the UK that want to understand the process or do the return themselves.

What is a VAT return and when is it due?

A VAT return is a summary of your VAT for a period (usually three months). You report:

Output VAT (VAT you charged on sales).
Input VAT (VAT you paid on purchases that you can reclaim).
The difference (payable to HMRC or reclaimable).

The return and any payment are due one month and seven days after the end of the period. So for a period ending 31 March, the return and payment are due by 7 May. You must submit the return online via software that is compatible with Making Tax Digital for VAT. For more on VAT and compliance, see our Statutory Accounts & Tax service.

The main boxes on the VAT return

Box 1: Output VAT

The VAT you charged on sales (and other outputs) in the period. This includes standard, reduced, and zero-rated supplies that carry VAT. Exempt supplies are not included. You must use the correct rate for each supply. HMRC VAT return guide explains each box in detail.

Box 2: VAT due on acquisitions

VAT due on goods you acquired from other EU countries (under the old rules). Post-Brexit, this may not apply to many UK businesses; check the current rules.

Box 3: Total VAT due

The sum of Box 1 and Box 2 (and any other VAT due in the period).

Box 4: Input VAT to reclaim

VAT you paid on business purchases that you are entitled to reclaim. You must have valid VAT invoices and the purchases must be for business use. Blocked items (e.g. client entertainment, certain cars) are not included.

Box 5: Net VAT

Box 3 minus Box 4. If positive, you pay HMRC. If negative, you reclaim (subject to the return being submitted and any compliance checks).

Box 6: Total sales excluding VAT

The total value of your sales (excluding VAT) in the period. This is a disclosure figure so HMRC can sense-check your return.

Box 7 and 8: Total purchases and total value of supplies to other EU countries

Further disclosure figures. Your software or accountant will map your figures to the right boxes.

Box 9: Total value of acquisitions from other EU countries

Again, may not apply to many UK businesses now; follow current guidance.

Records you need

You must keep records that allow you to complete an accurate return. That means records of sales (with VAT amounts) and purchases (with VAT amounts and valid invoices where you are reclaiming). Records must be kept digitally and submitted via MTD-compatible software. We keep bookkeeping in shape so VAT returns are straightforward.

Common mistakes

Wrong VAT rate. Apply 20% (or 5%, 0%) correctly. Some supplies are exempt; do not include them in Box 1.
Reclaiming what you cannot. Blocked input VAT (e.g. entertainment, certain cars) must not go in Box 4.
Missing the deadline. Late returns and payments can attract penalties and interest. Set a reminder for the due date.
Rounding errors. Use the correct rounding (usually to the nearest penny) and check that the return balances.

UK tax and legal accuracy

VAT returns and MTD are governed by the VAT Act 1994 and HMRC guidance. The information here reflects the position for 2024/25 and 2025/26. This article is for informational purposes only and does not constitute professional tax or financial advice. Please speak to a qualified accountant before completing or submitting a return.

Frequently asked questions

Can I submit a VAT return manually on paper?

No. VAT-registered businesses must submit returns electronically via MTD-compatible software. Paper returns are no longer accepted for the main scheme.

What if I have nothing to report in a period?

You still submit a return (nil return if applicable). The obligation is to submit by the deadline even if the figures are zero.

What if I make a mistake on a past return?

You can correct errors on a later return if they are within limits (both in value and time). Larger or older errors may need a separate disclosure. Your accountant can advise.

Do I pay VAT on the same day I submit the return?

Payment is due by the same deadline as the return (one month and seven days after the period end). You can pay before that. Direct debit is a common way to ensure payment is on time.

What is the flat rate scheme and does it change the return?

On the flat rate scheme you do not fill Boxes 1–4 in the same way; you apply your flat rate percentage to your turnover and pay that amount. The return still has to be submitted via MTD software. See our VAT flat rate article for more.

Summary and next steps

How to complete a VAT return in the UK: report output VAT (Box 1), input VAT (Box 4), and the other required figures. Use MTD-compatible software, keep the right records, and submit and pay by the deadline (one month and seven days after the period end). Getting it right keeps you compliant and avoids penalties.

If you would like help with VAT returns, bookkeeping, or MTD, we would be glad to help. At Figures Chartered Accountants we work with UK businesses on VAT and tax and bookkeeping. You can book a discovery call or look at our services.