How We Can Assist with Your VAT Returns – And What VAT Returns Actually Are

If your business is VAT-registered in the UK, submitting accurate and timely VAT Returns is a legal obligation, but it’s also an area where many business owners feel overwhelmed. With evolving tax regulations, multiple VAT schemes, and the complexities of Making Tax Digital (MTD), it’s easy to make mistakes or miss deadlines.

At HPL Accountancy, we specialise in helping businesses navigate their VAT responsibilities with confidence. In this guide, we’ll explain what VAT Returns are, when and how they must be submitted, and how we can support your business with reliable, compliant, and efficient VAT services.

What Is a VAT Return?

A VAT Return is a summary of your VAT-related activity for a specific period, usually quarterly. It details how much VAT your business has:

• Charged to customers (known as output tax)
• Paid on purchases and expenses (known as input tax)

If you’ve charged more VAT than you’ve paid, you owe the difference to HMRC. If you’ve paid more VAT than you’ve charged, you may be due a VAT refund.

Submitting a VAT Return ensures that HMRC receives this information and collects the correct amount of tax.

Who Needs to Submit a VAT Return?

Any UK business with a taxable turnover over the VAT threshold (currently £90,000 as of 2024/25) must register for VAT and submit VAT Returns. Even if you are voluntarily VAT-registered (below the threshold), you must still complete returns once registered.

VAT Returns are typically submitted quarterly, though some businesses opt for monthly or annual accounting schemes depending on cash flow and reporting needs.

What’s Included in a VAT Return?

A standard VAT Return includes:

1. Total sales and purchases, including exempt and zero-rated items
2. VAT charged on sales (output VAT)
3. VAT paid on business purchases (input VAT)
4. Net VAT to pay or reclaim
5. Any adjustments, such as partial exemption or bad debt relief

The return must be submitted digitally in line with Making Tax Digital for VAT, using compatible accounting software.

Common Challenges with VAT Returns

Many businesses struggle with:

• Understanding which goods and services are VATable
• Applying the correct VAT rate (standard, reduced, or zero)
• Calculating VAT accurately across domestic and international sales
• Handling reverse charge VAT rules and intra-EU transactions
• Managing partial exemption or flat-rate schemes
• Keeping digital records and using MTD-compliant software

Errors in VAT Returns can result in penalties, delayed refunds, and time-consuming investigations from HMRC.

How HPL Accountancy Can Help

As your trusted VAT partner, HPL Accountancy offers end-to-end support with your VAT responsibilities. Here’s how we can assist:

1. VAT Registration and Advice

We’ll help determine whether your business needs to register for VAT and guide you through the process. We also advise on the most suitable VAT scheme for your business – whether that’s standard, flat-rate, cash accounting, or annual accounting.

This helps you stay compliant while managing cash flow effectively.

2. Accurate VAT Calculations

Using your financial records, we’ll calculate:

• Total VAT owed to HMRC
• Input VAT you’re eligible to reclaim
• Any adjustments, including partial exemptions or corrections from previous periods

We ensure every figure is supported by evidence and fully compliant with current regulations.

3. Making Tax Digital (MTD) Compliance

All VAT-registered businesses must now follow Making Tax Digital for VAT, which means:

• Keeping digital records
• Using HMRC-approved software to submit VAT Returns

We help you stay compliant with MTD by recommending suitable software, training your team, or managing digital submissions on your behalf.

4. Timely VAT Submissions

Missing a VAT Return deadline can result in surcharges and default interest. We keep track of all VAT deadlines and submit your return on time, every time. You’ll never miss a submission date with us managing your VAT schedule.

5. VAT Inspections and Disputes

If you’re selected for a VAT inspection or if HMRC raises a query on your return, we can act on your behalf. We prepare the necessary documentation, represent you in discussions with HMRC, and resolve any discrepancies quickly and professionally.

6. Ongoing VAT Advice and Planning

VAT regulations are complex and ever-changing. Whether you’re dealing with international trade, digital services, or property transactions, we offer ongoing advice to ensure you’re always on the right side of HMRC, while optimising your VAT position.

Benefits of Outsourcing Your VAT Returns

By working with HPL Accountancy, you gain:

Peace of mind that your VAT is compliant and accurate
 More time to focus on your core business
 Reduced risk of errors, penalties, or late submissions
 Expert advice on VAT schemes and tax-saving opportunities
 Full support with audits, refunds, and disputes

Conclusion

VAT Returns are a legal obligation, but they don’t have to be a source of stress. With professional support, you can ensure your returns are accurate, timely, and fully compliant with HMRC requirements.

At HPL Accountancy, we specialise in delivering expert VAT services to sole traders, limited companies, and growing SMEs across the UK. From registration to submission and everything in between, we’ll help you stay compliant and focused on your business.

👉 Need help with your VAT Returns?
 Contact HPL Accountancy today for reliable, professional VAT support tailored to your business needs.