How to File VAT Returns in the UK (Complete Guide 2026)

Libin Lazar
Mar 5
2 min read

VAT return UK

Value Added Tax (VAT) is one of the most important taxes businesses must manage in the United Kingdom. If your business is registered for VAT, you are required to submit VAT returns regularly to HMRC.

Filing VAT returns correctly helps businesses remain compliant with tax regulations and avoid penalties. In this guide, we explain how VAT returns work in the UK and how businesses can file them correctly.

What is a VAT Return?

A VAT return is a report submitted to HMRC showing how much VAT a business has charged on sales and how much VAT it has paid on purchases.

The difference between these amounts determines whether the business must pay VAT to HMRC or receive a refund.

VAT returns usually cover a three-month accounting period, also known as a VAT quarter.

Who Needs to File VAT Returns?

Businesses must register for VAT if their taxable turnover exceeds £90,000 within a 12-month period (as of current UK regulations).

However, some businesses choose to register voluntarily even if their turnover is below this threshold.

Businesses that are VAT registered must submit VAT returns to HMRC regularly.

VAT Return Deadlines

Most VAT registered businesses submit VAT returns every 3 months.

The deadline for submitting a VAT return and paying any VAT due is usually one month and seven days after the end of the VAT period.

For example:

VAT period end: 31 MarchDeadline to submit and pay: 7 May

Missing the deadline may result in penalties from HMRC.

Information Required for VAT Returns

A VAT return typically includes:

Total VAT charged on sales
Total VAT paid on purchases
Total sales and purchases excluding VAT
Amount of VAT payable to HMRC or refundable

Businesses must keep accurate records of all VAT transactions.

Making Tax Digital (MTD) Requirements

The UK government introduced Making Tax Digital (MTD) for VAT to modernise tax reporting.

Under MTD rules, VAT registered businesses must:

Keep digital records
Use compatible accounting software
Submit VAT returns electronically

Popular MTD compatible software includes Xero, QuickBooks, Sage, and FreeAgent.

Common VAT Return Mistakes

Many businesses make errors when submitting VAT returns.

Common mistakes include:

Incorrect VAT Calculations

Errors in VAT calculations can lead to underpayment or overpayment.

Missing Expense Records

Failing to record business expenses may result in incorrect VAT claims.

Late Submissions

Submitting VAT returns after the deadline may trigger HMRC penalties.

Poor Record Keeping

Disorganised records make it difficult to prepare accurate VAT reports.

How an Accountant Can Help

Managing VAT returns can be complex, especially for growing businesses. Many UK companies work with professional accountants to ensure compliance with HMRC regulations.

Professional accounting support can help with:

Accurate VAT calculations
Preparing VAT returns
Maintaining compliant financial records
Avoiding HMRC penalties

Conclusion

Submitting VAT returns is a key responsibility for VAT registered businesses in the UK. Accurate record-keeping, proper accounting software, and timely submissions help ensure compliance with HMRC regulations.

Businesses that manage VAT correctly can avoid penalties and maintain smooth financial operations.

Need Help with VAT Returns?

Velvet Texado provides professional support for VAT returns, bookkeeping, payroll, and company accounts for UK limited companies and contractors.

VELVET TEXADO