Overview

This guide explains how to:

• Set up VAT Returns for submission to HMRC
• View open and previously submitted VAT Returns
• Make adjustments to VAT Returns
• Submit VAT Returns to HMRC

Key Benefits:

• Streamlines VAT reporting
• Ensures accurate submission to HMRC
• Provides audit trail for adjustments

What is a VAT Return

A VAT Return summarises the VAT you owe and VAT reclaimable for a given period. It includes:

• Box 1: VAT due on sales
• Box 4: VAT reclaimable on purchases
• Boxes 6–9: Totals of outputs, inputs, and other adjustments

Why it matters:

• Required by HMRC for compliance
• Ensures correct VAT payment or reclaim
• Helps maintain accurate financial records

Setting Up VAT Returns

Steps to Enable VAT Submission

1. Navigate to General Ledger → select Office Ledger
2. The VAT Returns option in the Ledger Actions menu will be disabled initially
3. Click Update Ledger
4. In the HMRC section, select VAT Return Timing Basis
5. Enter your HMRC Government ID and VAT Registration Number
6. Click Authorise Account → complete details on the HMRC gateway → Give Permission
7. Confirmation message: “Successfully authorised direct submission” 
8. Click Save(bottom right)
9. The VAT Returns option is now live in the Ledger Actions menu

Information cannot be changed once saved.

Viewing an Open VAT Return

• General Ledger → Office Ledger → VAT Returns
• In the Open tab, select View next to the relevant return
• You can now view the current VAT position and make adjustments if required

Making Adjustments to VAT Returns

1. With Transactions (Box 1 & Box 4)

View adjustments using View Breakdown next to the Box line.

2. Without Transactions (Box 6–9) 

To reverse, enter a contra adjustment. These adjustments appear under Adjustment without Transaction tab.

Submitting a VAT Return

• Navigate: General Ledger → Office Ledger → VAT Returns → Open tab → View
• Optional: Click View Late Claims (top right)
• Click Finalise VAT Return (bottom right)
• In pop-up, tick “I have read and accept the responsibilities…” → Click Submit
• Submission receipt confirms VAT Return sent to HMRC
• Return moves to Submitted tab
• System updates accounts:
  • VAT Output debited by Box 1
  • VAT Input debited by Box 4
  • VAT Payable credited

VAT payment can be made from the VAT Payable account.

Viewing a Submitted VAT Return

• Navigate: General Ledger → Office Ledger → VAT Returns → Submitted tab → Review
• The return is read-only (no Adjust options)
• Provides historical record for auditing

Best Practices