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Since April 2010 most VAT-registered businesses have been required to submit their VAT Returns online and pay any VAT due electronically. HM Revenue & Customs (HMRC) plans, from 1 April 2012, to extend this requirement to virtually all VAT- registered businesses.
This guide explains what you need to do to submit your VAT Return online and how to pay your VAT electronically. You (or your accountant) can opt to use either the free HMRC VAT Online service or commercial software.
Submitting your return online is quick, convenient, reliable and secure.
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You can submit your return online free of charge using the HMRC VAT Online service.
Before you can submit your return online, you must have registered and enrolled for the VAT Online service. Once you've done so, you'll be able to submit your return straightaway if one is due. You do not have to wait to receive an Activation Code (PIN).
Find out how to sign up to use VAT online services
Register and enrol as a new user with HMRC Online Services
A copy of every VAT Return you submit online will be automatically saved on your VAT Online services account for a period of 15 months after submission. You can also print off a copy of the submitted return and keep it with your other business records.
Once you have submitted your VAT Return to HMRC you will get an on-screen unique submission receipt reference number. It's a good idea to save or print a copy of this on-screen confirmation, as you will only receive an email confirmation of this receipt if you've registered your email address at the signing up stage for VAT Online services or at a later date for VAT messages (this is a separate process to setting up an email address to receive the email VAT Return reminder).
If you'd prefer to use a commercial software package to submit your return, there are a number you can choose from.
Using a commercial product is a quick and easy way of submitting your return online - you can submit your return almost instantly because the information is sent directly from your accounting software. Once you've checked your return on screen, all it takes is the click of a button to send it to HMRC.
You must have registered and enrolled for the VAT Online service to submit your return using commercial software. If you're already registered and enrolled then you can start submitting online at any time.
Find out how to sign up to use VAT online services
Read more about submitting your VAT Return using commercial software
See a list of HMRC-approved VAT Return software
Before an accountant (or agent) can submit your return online for you, they will have to:
You will then receive a letter containing a unique Authorisation Code and asking you to confirm the authorisation request. You should pass the code immediately to your accountant (if you agree the authorisation) and they will enter it online.
The Authorisation Code is valid for 30 days from the date of the letter. If it is not activated within 30 days then step 3 will need to be repeated by your accountant and you will receive a fresh Authorisation Code – so make sure you don’t delay giving the code to your accountant.
Your accountant can choose to submit your return using either HMRC's free online service or a commercial software package.
Find out how to sign up to use VAT online services
Register and enrol as a new user with HMRC Online Services
The online VAT Return is the same as the paper one, but completing your return online has some very definite advantages over submitting a paper copy:
You must have signed up for the VAT Online service before you can submit your VAT Return online.
When you login, click on the ‘Submit a return’ link from the ‘At a glance’ page. The ‘Submit a return’ screen lets you view those periods for which a return is due. Select the relevant link in the ‘period’ column that you wish to submit a return for and you’ll be taken to the ‘Accounting period’.
Simply fill in the return on screen as you would on paper, omitting the figures for boxes 3 and 5.You do not need to enter totals for boxes 3 and 5 because the online return will automatically calculate these figures for you, based on the information you entered in boxes 1, 2 and 4.
Before you can submit your completed return, you’ll be asked to read it through to check, and confirm, the figures are correct. Once you’ve done that, you’ll be asked to re-enter your User ID and password on the ‘Security check’ page for security purposes. When you have done this, you will need to click on ‘Submit’ to send your return online.
As soon as your return reaches HMRC’s systems you’ll see an ‘Acknowledgement’ page. This means your VAT Return has been successfully submitted.
It’s important you keep a copy of the submission receipt reference number.
By following the on-screen instructions and the 'Download VAT Return' link, you can print a copy of your VAT Return showing confirmation of the receipt of the return by HMRC. This shows the date and time of submission and a unique reference number. You can also print your submission receipt by following the 'Submission receipt' link. The submission receipt will include your submission receipt reference number.
See a demonstration of how to submit your VAT Return online
Read how to complete your VAT Return box-by-box
If the system won't accept your online return it's important to check you have filled in all the relevant boxes in the correct format. Where you do find an error you can normally change things and re-send it.
If you have checked everything, but HMRC's system won't accept your return, you should check the HMRC website (follow the link below) to see if there are any known problems and what to do if there are.
If you can't find the information that answers your problem on the HMRC website, then contact HMRC's VAT Online Services Helpdesk (follow the link below for contact details).
If you find that you can't submit your return online due to a problem with your own computer, your software provider or the HMRC service being unavailable, then you will need to:
If you miss the deadline to submit your return online or to pay your VAT electronically you may be liable to a surcharge. To avoid the possibility of a surcharge for late payment, make sure payment of any VAT due on your return clears to HMRC’s account by the due date.
Find out if there are any current problems with VAT online services
Read about what counts as a reasonable excuse for submitting online returns late
Read about signing up for email reminders from HMRC
Contact the VAT Online Services Helpdesk
If you submit your return online, you must pay any VAT due electronically. Paying electronically will normally give you to up to seven extra calendar days to submit your return and pay your VAT, unless you make annual returns or payments on account. The extended due date will be shown on your online return and you must ensure that cleared funds reach HMRC's bank account by this date. If your payment arrives later than this you may be liable to a surcharge for late payment.
There are various ways of paying your VAT electronically. These include internet and telephone banking, and Direct Debit. You can also pay by cheque at a bank or building society using a Bank Giro paying –in slip obtained from HMRC.
Since some of these methods can take a little time to set up, you should chose which method you want to use, and set it up, well in advance of the return and payment deadline.
If you pay by online Direct Debit, HMRC will collect payment from your nominated bank account a further three bank working days after the extended due date for your return. This means that online VAT Direct Debit offers you more time to pay than any other method - normally a minimum of ten extra calendar days.
How much time to allow: You must set up your Direct Debit Instruction (DDI) before you submit your next return and at least two bank working days before the return is due when the due date falls on a weekday. For example, if your return is due on Tuesday 7 September, two bank working days before this is Friday 3 September.
If your return due date falls on a weekend or bank holiday you will need to set up your DDI at least three bank working days before the return is due. For example, if your return is due on Sunday 7 November, three bank working days before this is Wednesday 3 November.
If your return is due in less than two or three bank working days as shown in the examples above then for this return only you will need to pay by a different electronic method.
Bank working days are Monday to Friday, excluding bank holidays
The due date for your return is shown on the screen where you enter your VAT Return figures. The acknowledgement page displayed when you submit your return will also confirm whether the payment will be collected by Direct Debit or whether you need to pay by a different electronic method.
Read more about how to pay VAT - including how to pay electronically
Find out about deadlines for your VAT Return and payment
Once you've signed up to submit your return online, you'll no longer receive a paper return or VAT Notes through the post. To view VAT Notes, log in to the VAT Online service and go to the 'At a glance' page and the section headed 'VAT Information'.
Or follow the link below to read all VAT updates.
Read VAT reference material and updates
Read about signing up for email reminders from HMRC
You can get help with submitting your VAT Return online in the following guides, which are available online, and which can also be downloaded and printed off.
Beginner's guide to signing up to use the VAT online service (PDF 106K)
Beginner's guide to completing your VAT Return online (PDF 85K)
There is also an online demonstrator, which takes you through the various screens involved in registering and enrolling for VAT Online, submitting a return, and setting up an online Direct Debit.
HMRC’s Business Education & Support Team offers free workshops and Business Advice Open Day events designed especially for small and medium sized businesses. At these events you can get information on how to sign up to the VAT Online service, how to complete your VAT Return online and how to pay your VAT electronically.
Read more about HMRC's Business Education & Support Team
You can also get help over the telephone.
Find out what to do if you made a mistake on an earlier VAT Return
