VAT Returns & MTD Compliance
If you're VAT registered, you must file quarterly VAT returns with HMRC using Making Tax Digital (MTD) compatible software. AccountsOS calculates all 9 boxes automatically from your transactions.
Filing Deadline
1 month + 7 days
Threshold 2024/25
£90,000
HMRC API
Live
Do You Need to Register for VAT?
Mandatory Registration
You must register for VAT if:
- Taxable turnover exceeds £90,000 in 12 months
- You expect to exceed £90,000 in next 30 days
- You take over a VAT-registered business
Voluntary Registration
You can choose to register if:
- You want to reclaim VAT on purchases
- Your customers are VAT-registered businesses
- It makes your business look more established
VAT Rates
Standard rate
Most goods and services
Reduced rate
Home energy, car seats, sanitary products
Zero rate
Food, books, children's clothes, public transport
Flat Rate Scheme
Small businesses (under £150,000 turnover) can use the Flat Rate Scheme — pay a fixed percentage of your gross turnover instead of calculating input/output VAT. Rates vary by industry (e.g., IT consultants pay 14.5%).
The 9-Box VAT Return
Your VAT return consists of 9 boxes. AccountsOS calculates all of these automatically from your categorized transactions.
VAT due on sales
Output VAT on your sales and other outputs
VAT due on acquisitions
VAT on goods bought from EU (post-Brexit rules apply)
Total VAT due
Box 1 + Box 2
VAT reclaimed on purchases
Input VAT on your business purchases
Net VAT to pay/reclaim
Box 3 - Box 4 (the amount you pay or get back)
Total sales (ex VAT)
Total value of sales excluding VAT
Total purchases (ex VAT)
Total value of purchases excluding VAT
Total EU supplies
Value of goods supplied to EU
Total EU acquisitions
Value of goods acquired from EU
Making Tax Digital (MTD)
Since April 2022, all VAT-registered businesses must use MTD-compatible software to keep digital records and submit VAT returns.
- Digital record keeping (no paper ledgers)
- Digital links between software
- Submit directly to HMRC via API
- No manual data entry allowed
AccountsOS + MTD: We're working on direct HMRC API submission. Currently, we calculate your 9-box figures — you submit via HMRC.
VAT Return Example
All figures calculated automatically from your transactions
Filing Deadline
VAT returns are due 1 calendar month and 7 days after the end of your VAT quarter.
Standard Quarters:
- • Q1: Jan-Mar → File by 7 May
- • Q2: Apr-Jun → File by 7 Aug
- • Q3: Jul-Sep → File by 7 Nov
- • Q4: Oct-Dec → File by 7 Feb
Payment is due at the same time as the return.
Late Filing Penalties
HMRC uses a points-based system for late VAT returns:
Late payment: Interest + up to 4% surcharge on unpaid VAT.
How AccountsOS Handles VAT
From tracking to calculation to reminders — we've got VAT covered.
Automatic VAT Tracking
Every transaction is tagged with the correct VAT rate. We track input and output VAT separately.
9-Box Calculation
At the end of each quarter, we calculate all 9 boxes from your transaction data.
Deadline Reminders
Get reminded at 14, 7, 3, and 1 day before your VAT return is due.
Direct HMRC Submission
Submit your VAT return directly to HMRC via the MTD API. Receive official confirmation with form bundle number.
Related Resources
Calculate Your VAT Return Automatically
AccountsOS tracks VAT on every transaction and calculates your 9-box return.
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