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VAT returns under Making Tax Digital

Under Making Tax Digital, a VAT return goes to HMRC from software, not typed into HMRC's website. This page walks through a client's VAT return in Fyling, from the first period to HMRC's answer.

Source: gov.uk: Making Tax Digital for VAT

What Fyling does and does not do

Fyling shows HMRC's VAT periods for each client, works out boxes 3 and 5 from the boxes you enter, and submits the return to HMRC under your practice's own HMRC connection.

It does not decide whether the figures are right. Your client approves them, and you confirm that before the return can be sent.

Before you start

Your practice must be connected to HMRC, and the client must have authorised your practice for VAT. The VAT page tells you which of the two is missing. See Connecting HMRC and client authorisation.

How to prepare and submit a VAT return

  1. Open VAT and add the client company with its VAT number.
  2. Open the client's VAT periods. Fyling asks HMRC which periods are open and when each is due, soonest first.
  3. Open a period and enter the figures. You can type them, upload a spreadsheet from the Bridging tab, or pull them from the client's connected accounting software. All three end up in the same draft, with the same checks.
  4. Tick the declaration that your client has seen and approved the return, and mark it ready.
  5. If your practice asks for a reviewer or a recorded client approval before anything is sent, that is checked here too.
  6. Press Send to HMRC. When HMRC answers, its receipt is kept with the return.

The nine boxes

You enter boxes 1, 2, 4 and 6 to 9. Fyling works out box 3 (box 1 plus box 2) and box 5 (the difference between box 3 and box 4). Boxes 6 to 9 are whole pounds. Boxes 1, 2 and 4 can be negative, for a credit.

Source: gov.uk: How to fill in and submit your VAT Return (VAT Notice 700/12)

Change a figure after marking the return ready, and it goes back to draft. The approval was about the old figures.

If something goes wrong

If HMRC rejects the return, its reason is shown on the return. If the connection drops before HMRC answers, Fyling asks HMRC whether it holds a return for that period before letting you try again. HMRC accepts only one return per period, so a retry cannot file twice.

After it is submitted

Past returns shows Fyling's copy of each return, and HMRC's copy when you ask for it. Payments and penalties shows what HMRC holds for the client today, read live and not stored.

What it does for your practice: VAT returns