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MTD VAT Returns

This section covers how to use My Tax Digital to prepare and file your MTD VAT Returns.

Quick start guide to submitting VAT Returns using Bridging mode:

  1. Sign in to My Tax Digital after you have registered.

  2. Select the business you previously added.

  3. From the home screen, click on "MTD VAT".

  4. Click on "Submit VAT return".

  5. Use bridging mode to import the nine VAT figures you already have in a spreadsheet.

  6. Note that the VAT scheme will default to what was set when the business was added, and the period will default to the latest open obligation. A different period can be selected if historic obligations need fulfilling, but individual period dates are controlled by HMRC.

  7. If necessary, download the example templates provided by My Tax Digital and integrate them into your existing spreadsheet. These can be linked via cell references to your pre-calculated VAT figures.

    Download example VAT import spreadsheet (XLSX)

    Download example VAT import CSV (CSV)

  8. Once the cells on the sheet are populated, save the spreadsheet to your computer.

  9. Click on "Import figures" and select "file" to choose your saved spreadsheet.

  10. Click the "upload" button to upload and import the figures into My Tax Digital. The sheet dropdown allows you to select alternative sheets if required.

  11. Review and cross-check your figures with your original spreadsheet.

  12. Select either the business or agent declaration and click on "Review and submit".

  13. On the review and submit screen, double-check your figures because they cannot be changed once you click submit.

  14. Click "Submit".

  15. A VAT return receipt will be presented and saved to My Tax Digital; you can also print or download it for your records.

Submission Modes: Accounting vs. Bridging (Digital Links)

My Tax Digital supports two ways to prepare your VAT return data:

Mode How it Works Best For
Accounting Mode You use the Transactions section within the app to record all your income and expenses. The app automatically calculates the nine boxes for your VAT return based on your entered data. Users who want to keep all their digital records in My Tax Digital.
Bridging Mode (Digital Links) You keep your records in a separate spreadsheet or system. You then import a summary of the nine VAT boxes into My Tax Digital for submission. This import maintains the required 'digital link' from your source data. Users who prefer to use a spreadsheet (e.g., Excel) or other basic software for record-keeping.

Supported VAT Schemes

When calculating your VAT return, the app supports the following common VAT schemes:

Scheme Name VAT Calculation Method
Standard Accounting Scheme VAT is due on the date the invoice is issued or received, regardless of whether the money has been paid or collected.
Cash Accounting Scheme VAT is due on the date you receive payment from a customer or the date you pay a supplier.
Flat Rate Scheme You pay a fixed percentage of your VAT inclusive turnover. The system supports this in Accounting mode by applying the fixed rate percentage you specifiy.
Margin Scheme Used for selling second-hand goods, works of art, or antiques. VAT is calculated only on the difference between the sale price and the purchase price (your margin).

VAT Return Receipts

This screen allows you to view proof of every VAT return successfully filed through My Tax Digital.

  1. View Receipts: Navigate to VAT Return Receipts in the VAT menu.

  2. Browse History: A list of previously submitted VAT periods and the submission date will be shown.

  3. View Details: Click on a period to see the full details, including the official Receipt ID provided by HMRC, the nine box figures submitted, and the submission date and time. This serves as your proof of filing.

Obligations

The Obligations screen displays all your past, current, and future VAT return deadlines as communicated by HMRC.

  1. Check Deadlines: Navigate to Obligations in the VAT menu.

  2. View Status: You will see a list of VAT periods. The status will indicate whether the obligation is Fulfilled (submitted) or Open (due or overdue).

  3. Action: For Open obligations, you can click through to the submission screen to prepare and file the return before the due date.

Liabilities

This screen shows your financial position with HMRC regarding your VAT account, specifically the amounts you owe or are due to reclaim.

  1. View History: Navigate to Liabilities in the VAT menu.

  2. Review Amounts: The system pulls data directly from HMRC to show:

    • Amount Due: How much VAT you owe for a given period.
    • Amount Reclaimed: How much VAT HMRC owes you for a given period.

  3. Payment Planning: Use this screen to track your total outstanding VAT liability.

Payments

The Payments section provides a historical record of all VAT payments made to or received from HMRC.

  1. Check Payments: Navigate to Payments in the VAT menu.

  2. Verify Transactions: View the date and amount of each payment made to HMRC and any refunds received from HMRC.

  3. Reconciliation: Use this screen to reconcile your bank records against HMRC's records to ensure all VAT payments have been correctly recorded.

Penalties

This screen shows any penalty charges or penalty points applied to your VAT account by HMRC.

  1. View Overview: Navigate to Penalties in the VAT menu.

  2. Summary: The top of the screen provides an overview, including the total value of any Late Submission Penalties and Late Payment Penalties applied.

  3. Detailed Information: Scroll down to see detailed information on any active or inactive penalty points, the regime threshold, and any principal charge references issued by HMRC.