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How to file VAT returns with MTD

Making Tax Digital (MTD) requires UK VAT-registered businesses to submit their VAT returns online. Filing digitally reduces mistakes, saves time, and ensures submissions meet HMRC standards. This guide explains what you need, who must comply, and the steps to file your VAT returns accurately.

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    What is VAT MTD?

    The UK government’s MTD initiative moves Tax reporting online. For VAT, this involves:

    • Keeping digital records of sales and purchases
    • Using software that works with MTD
    • Sending returns securely to HMRC

    Businesses registered for VAT must follow these steps to remain compliant. Failing to do so may result in fines, extra VAT charges, or HMRC inspections.

    Who must file VAT returns digitally

    These regulations are in effect as of April 2022 for:
    • Limited companies
    • Sole traders
    • Companies that handle VAT for several customers
    The regulations also apply to small businesses that fall below the VAT threshold.

    What you need before MTD VAT filing

    Before submitting VAT returns, gather:
    • VAT registration number and Government Gateway login details
    • Sales and purchase records for the relevant period
    • Access to MTD-compatible software
    Having these ready speeds up filing and lowers the risk of mistakes.
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    How to file VAT returns with Swift VAT Pro

    Here’s a step-by-step breakdown of how easy it is to file your MTD VAT return using Swift VAT Pro:

    1. Log in to your account on the Swift VAT Pro website.

    Log in to your account
    1. Navigate to the client dashboard.
    client dashboard

    3. Check for any red error messages on the dashboard.

    If a red error appears, you will need to generate a new Access Token from the HMRC VAT Gateway. Click on “Get Access Token” and follow the steps to authorise your account. 

    HMRC VAT Gateway

    4. Once the token is successfully generated, go to the “submit VAT return List / open submission” section and click on “submit VAT return.”

    submit VAT return

    5. Download the sample CSV file provided.

    Fill in the required figures from Box 1 to Box 9, then upload the completed Excel file back into the system.

    Download the sample

    6. Tick the checkbox to confirm the legal declaration, enter the captcha code, and click the “Submit VAT” button.

    You will get a message “VAT return submitted successfully”.

    Advantages of VAT filing online

    Digital VAT returns have the following advantages:

    • Compliance with HMRC regulations
    • Fewer errors compared to manual calculations
    • Quicker submission without the need for paper forms
    • Clear documentation for accounting or auditing needs

    Digital filing streamlines reporting, improves accuracy, and saves time.

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    Accountants / Agents

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    Your Questions – Answered ,We’re here to help you with anything VAT-related

    What are the steps to file a VAT return with MTD software?

    Filing a VAT return through MTD software is straightforward. First, sign in using your Government Gateway ID. Then, connect your MTD-compatible software to HMRC. Review your digital records to ensure all sales and purchase data are accurate.
    Select the correct VAT period, fill in the figures for Boxes 1 to 9, and double-check everything before submitting.
    Once you confirm the declaration, submit your return. You’ll receive a confirmation message when HMRC successfully receives your VAT return.

    Yes, all VAT-registered businesses in the UK must file their returns digitally under the Making Tax Digital (MTD) regulations. This applies regardless of turnover or business type. The goal is to make Tax filing more accurate and efficient while reducing paperwork and human error.

    Manual or paper VAT filing no longer meets HMRC requirements unless you’re officially exempt due to specific circumstances, such as age, disability, or limited access to the internet.

    You can still use spreadsheets to keep VAT records, but they must be connected to MTD VAT bridging software. This software securely links your spreadsheet to HMRC’s system. Without it, your submission won’t meet MTD rules. Using fully digital MTD software is often easier and safer, as it automatically handles calculations, updates VAT rates, and generates accurate reports. It’s a good long-term choice for avoiding errors and simplifying compliance.
    Not following the MTD process can lead to penalties, late fees, or interest on unpaid VAT. HMRC may also carry out compliance checks or audits to review your submissions. Repeated non-compliance can harm your business record and result in stricter monitoring. Filing VAT digitally ensures your data reaches HMRC securely, helping you avoid unnecessary issues. It’s better to stay compliant now rather than risk fines later.

    Cloud-based MTD software simplifies and enhances VAT filing. It allows you to access your data anytime, from any device, without installing heavy programs. Your records stay safe through automatic backups, and updates are handled automatically, keeping you in line with the latest HMRC rules. Cloud platforms also support multi-user access, enabling accountants and clients to work together smoothly. It’s a modern, reliable way to handle VAT returns efficiently.