If your business is VAT-registered in the UK, submitting a VAT return is a legal obligation that can also provide valuable insight into your financial health. Whether you're a start-up navigating VAT for the first time or a growing enterprise looking to improve your compliance, understanding how VAT returns work is essential. At Lanop, we help businesses simplify their VAT reporting and stay on top of their tax responsibilities.
What Is a VAT Return?
A VAT return is a summary report that a VAT-registered business submits to HM Revenue & Customs (HMRC), usually every quarter. It details the amount of Value Added Tax (VAT) you've charged your customers and the VAT you've paid on business-related goods and services. The difference between these two amounts determines whether you need to pay HMRC or receive a refund.
When Are VAT Returns Due?
Most businesses are required to file a VAT return quarterly, although some may choose annual or monthly schedules depending on their specific cash flow and business model.
A typical VAT return deadline is:
One calendar month and 7 days after the end of the VAT period.
For example, if your VAT quarter ends on March 31st, your return must be submitted (and any payment made) by May 7th.
What Information Is Included?
Your VAT return typically includes:
Total sales and purchases during the VAT period
VAT you’ve charged (output tax)
VAT you’ve paid on business purchases (input tax)
VAT owed to HMRC or the amount to be reclaimed
It’s crucial that the information is accurate. Errors can result in penalties, interest charges, or investigations, so keeping robust digital records is essential—especially under Making Tax Digital (MTD) regulations.
Making Tax Digital (MTD) for VAT
Under MTD, businesses above the VAT threshold (£90,000 from April 2024) must maintain digital records and use HMRC-compatible software to file VAT returns. MTD aims to reduce errors and streamline the tax process, but it also means that businesses need to use compliant accounting software and ensure their bookkeeping is consistently up to date.
At Lanop, we assist clients in migrating to MTD-compliant systems and offer ongoing support to ensure VAT obligations are met with confidence.
Common Mistakes in VAT Returns
Filing VAT returns may seem straightforward, but many businesses make avoidable errors. Some of the most common mistakes include:
Incorrect VAT rates (especially on international transactions)
Failure to include reverse charges
Claiming VAT on non-business or ineligible expenses
Missing deadlines and incurring penalties
By working with professional accountants like Lanop, you can avoid these pitfalls and ensure that your VAT reporting is accurate and compliant.
Special VAT Schemes
Certain businesses can benefit from simplified VAT schemes, such as:
Flat Rate Scheme: Ideal for small businesses with limited expenses.
Annual Accounting Scheme: Submit one return per year, helping with budgeting and cash flow.
Cash Accounting Scheme: Pay VAT only when you receive payment from customers, rather than on invoice date.
Each scheme has its pros and cons depending on your business model. We can help you determine the most tax-efficient choice for your situation.
What Happens If You Miss a VAT Return?
Failing to submit your VAT return or pay your VAT bill on time can result in:
Late payment interest
Default surcharges
HMRC investigations or audits
It’s always better to file on time—even if you can’t pay immediately—since HMRC is more likely to agree on a payment plan if you've submitted your return punctually.
How Lanop Can Help
Filing VAT returns accurately and on time requires a mix of accounting expertise, regulatory awareness, and software know-how. At Lanop, we offer end-to-end VAT support including:
Registration for VAT and advice on suitable schemes
Preparation and filing of quarterly/annual VAT returns
MTD-compliant digital bookkeeping solutions
Advice on VAT planning and international VAT matters
Liaison with HMRC on your behalf
By outsourcing your VAT return duties to Lanop, you free up time to focus on running your business while ensuring that your tax obligations are handled professionally.
Final Thoughts
VAT compliance isn’t just about avoiding penalties—it’s also an opportunity to streamline your financial operations and plan confidently. Whether you're new to VAT or looking to improve your existing process, Lanop is here to help you stay compliant, save time, and gain peace of mind.
Need help with your next VAT return? Contact our expert team at Lanop today for a free consultation.
