- Every month or quarter
VAT returns
A VAT return is only as good as the bookkeeping under it. Where the records are up to date and complete, a straightforward return takes three to five working days from start to submission. Where they are not, the honest answer is that it takes longer, and we will say so rather than rush a figure onto a return.
What VAT returns covers here
- VAT coding and VAT reconciliations
- Preparing and submitting the return
- Checking the return against the underlying records before it is filed
The VAT control account nobody has ever agreed
A VAT return is a report. It reads what is in the bookkeeping and totals it. That means the software will produce a return whether or not the numbers underneath it are right, and it will produce it just as confidently either way.
The check we do first, and the one most often missing when we take a business on, is the VAT control account. It is reconciled to VAT returns submitted, payments made to or refunds received from HMRC, and any outstanding VAT balance. Where nobody has ever agreed it, the difference accumulates quietly across quarters: a return filed from a period that was later edited, a payment posted to the wrong code, a credit note raised after submission. Each one is small. Several years of them is not, and the return that finally gets queried is rarely the one where the problem started.
How long a VAT return takes, and when it takes longer
For a straightforward return, where the bookkeeping is up to date and the records are all available, we would normally complete the review and the return within three to five working days from start to submission.
That figure comes with a condition attached and we would rather state it than bury it. More complex returns, and any return that needs bookkeeping corrections or answers to queries first, take longer. If we find something on the way through that does not agree, we will tell you as soon as we know rather than at the deadline, because the filing deadline does not move and late submission carries penalties under HMRC's points-based regime. That is the reason we ask for records early rather than a preference for it.
We will not put a figure on a return we cannot support. If the position is genuinely uncertain, that is a conversation about how to deal with it, not a rounding decision.
What we check before a return is filed
The return itself is the last step. Before it, we reconcile the bank so the period is complete, review the VAT coding rather than assuming the software got it right, and check the return against the underlying records. Coding is where most of the errors live: the treatment of a transaction depends on what it actually was, and software defaults are set for the common case rather than for yours.
Where something looks unusual we ask about it while the period is still recent enough for you to remember. That is the same principle the bookkeeping runs on, and it is why the two work best together: a VAT return prepared on top of bookkeeping we already maintain has almost no investigation in it.
VAT, Making Tax Digital and keeping the records digitally
VAT-registered businesses have been inside Making Tax Digital for some years now, which means digital record keeping and submission through compatible software rather than by typing figures into a form. In practice that is settled ground and most businesses we take on are already there, even if the digital links between their spreadsheets and their software are not quite what they should be.
What is newer, and what people are now asking about, is Making Tax Digital for Income Tax, which is a different regime affecting sole traders and landlords rather than VAT. If that is the question you actually have, our Making Tax Digital service covers getting ready for it.
VAT registration, deregistration and changing scheme
There is more than one way of accounting for VAT. The flat rate scheme, cash accounting and standard VAT accounting each work differently, and the registration and deregistration thresholds are set by HMRC rather than by choice. We can explain how each VAT scheme works and how it would be applied to your records.
What we can also do is look at your actual figures and set out what each option would have meant over the last twelve months, which is information rather than a recommendation. Choosing between them is advisory work and it is not something this practice provides: where the decision needs advice we will say so and refer you to a specialist. We handle the registration, deregistration or scheme change itself once it has been decided.
If your VAT is already behind
Returns that are late, or filed on figures you have since realised were wrong, are a more common starting point than people expect and not one we treat as unusual. The work is to establish what the correct position actually is, which usually means a clean-up before anything can be filed, and then to deal with HMRC about the difference.
Where corrections need to be made or a disclosure is appropriate, there are established routes for that and the outcome depends on the circumstances, including how the error arose and whether it is disclosed before HMRC asks. Leaving it alone is the one approach that reliably makes it worse.
Common questions about VAT returns
How long does a VAT return take?
For a straightforward return, where the bookkeeping is up to date and all the records are available, we would normally complete the review and the return within three to five working days from start to submission. More complex returns, or any that need bookkeeping corrections or answers to queries first, take longer. We will tell you as soon as we know rather than at the deadline.
What is a VAT control account and why does it matter?
It is the balance in your books representing VAT owed to or reclaimable from HMRC. It is reconciled to the VAT returns submitted, the payments made to or refunds received from HMRC, and any outstanding VAT balance. It is the check most often missing when we take a business on. Where nobody has ever agreed it, small differences accumulate across quarters and the return that eventually gets queried is rarely the one where the problem started.
Can you take over if my VAT returns are late or I think they were wrong?
Yes, and it is a more common starting point than people expect. The work is to establish what the correct position actually is, which usually means a bookkeeping clean-up before anything can be filed, and then to deal with HMRC about the difference. Where corrections or a disclosure are appropriate there are established routes, and the outcome depends on the circumstances, including how the error arose.
Do you handle the Making Tax Digital side of VAT?
Yes. VAT-registered businesses have been inside Making Tax Digital for some years, which means digital records and submission through compatible software. Many businesses we see are already there, though the digital links between spreadsheets and software are often not what they should be. Making Tax Digital for Income Tax is a separate regime and we cover that on its own service page.
How do the flat rate scheme and cash accounting differ?
They are different ways of accounting for VAT, and which one a business is eligible for depends on its turnover and circumstances. We can explain how each works and set out what each would have meant against your actual figures over the last twelve months. Choosing between them is advisory work and not something this practice provides, so where the decision needs advice we will say so and refer you. We handle the scheme change itself once it has been decided.
Do I need you to do the bookkeeping as well?
No, but it is usually cheaper if we do. A VAT return prepared on top of bookkeeping we already maintain has almost no investigation in it. Where we are handed records at the end of a quarter, the review is a larger part of the job and the timing depends on how complete those records are.
Ask us
Not the question you had?
Ring and ask it. You will get a straight answer rather than a quote, and if this is not the right service for you we will say so.
- Emails answered within one working day
- Calls returned the same day or the next
- A straightforward VAT return in three to five working days
