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.
Do You Need to Register for VAT?
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
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.
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 calculate your 9-box figures and file your VAT return to HMRC once you approve it. Filing is on paid plans.
On HMRC's list of MTD VAT software (opens gov.uk in a new tab)Filing Deadline
VAT returns are due 1 calendar month and 7 days after the end of your VAT quarter.
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.
Related Resources
Calculate Your VAT Return Automatically
AccountsOS tracks VAT on every transaction and calculates your 9-box return.