Top 10 VAT return features in the best UK VAT software

Q: How do I file my VAT return using Swift VAT Pro?

You can log in at Swift VAT Pro login , import or connect your records, review your VAT summary, and submit directly to HMRC—all within minutes using our Making Tax Digital compliant platform.

Filing VAT returns is just one of those jobs every UK business has to deal with, but it doesn't need to be a headache. With the best VAT software, you can cut down on paperwork, avoid mistakes, and keep HMRC happy without spending hours on admin. For small and medium-sized businesses, the right system doesn't just handle compliance; it also helps make everyday tasks faster and easier to manage.

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In this guide, we’ll break down the VAT return features worth paying attention to so you can choose accounting software that actually works for you.

1. MTD for VAT compliance (HMRC integration)

This is non-negotiable, your software must be listed on HMRC’s approved software list and integrate directly with the HMRC gateway. It should enable end-to-end digital VAT submission without requiring manual spreadsheet uploads or reliance on bridging software.

2. Auto-calculation of VAT liabilities in VAT accounting software

The best platforms — often described as VAT accounting software — automatically calculate the VAT amounts owed or reclaimable, eliminating the need for manual calculations and reducing the risk of errors. This is especially valuable if you:

Deal with multiple VAT rates (standard, reduced, exempt)
Operate in different industries
Sell digital goods/services

3. Multiple VAT schemes support

Not every business uses the same VAT scheme. Your software should support:

Standard VAT
Flat Rate Scheme (FRS)
Cash Accounting Scheme
Margin Scheme (for second-hand goods)
Retail Schemes

Being locked into one VAT structure limits flexibility. Future-proof your accounting setup by ensuring the software grows with your business.

4. Real-time VAT reporting dashboard in the best VAT return software

You shouldn’t have to wait till quarter-end to know what your VAT position looks like. A live VAT dashboard gives a breakdown of:

Total VAT collected
Total VAT paid on purchases
Net VAT due/refundable

This enables proactive cash flow planning, a crucial step for businesses with tight margins or unpredictable cash flow cycles.

5. VAT error detection & warnings

Small mistakes (e.g., wrong tax codes, missing invoices) can cause significant problems with HMRC. Modern software should flag:

Duplicate entries
Non-reconciled transactions
Out-of-scope VAT activity
Incorrectly categorized inputs

These intelligent alerts can prevent penalties and build confidence in your record-keeping.

6. One-click VAT return filing

The submission process should take seconds, not hours. Look for tools that offer:

Pre-filled VAT 100 returns
One-click filing with HMRC
Automated email confirmation

This simplifies workflows, especially for non-accountants who manage their books.

7. Digital record-keeping & audit trail

MTD rules require businesses to keep digital VAT records for up to 6 years. Choose a solution that:

Stores VAT returns securely
Logs every user activity
Allows digital backups/downloads

This builds trust, both for your audits and when dealing with accountants or inspectors.

8. Custom VAT codes & flexibility

If your business operates across multiple regions or specializes in niche products/services, custom VAT code support is essential. The software should let you:

Define unique VAT rules
Apply location-specific tax logic
Override system defaults when necessary

9. Multi-currency & international VAT handling

Selling internationally? You need software that:

Handles VAT across the EU and beyond
Converts currencies at correct VAT exchange rates
Calculates reverse charge and OSS/IOSS

Global VAT compliance is no longer optional for many online businesses. Your accounting tool should keep up.

10. Accountant collaboration tools

Businesses often work hand-in-hand with accountants. Look for software that enables:

Multi-user access
Restricted permissions
Accountant portals
Commenting or tagging on entries

This minimizes back-and-forth emails and streamlines the returns process.

Mobile VAT management

In 2025, business owners are more mobile than ever. A VAT-capable mobile app that lets you:

Scan receipts with auto-VAT tagging
View pending VAT obligations
File from your phone

can be a game-changer for consultants, freelancers, and retail managers on the go.

Final Thoughts: Choose features that support growth

Whether you call it the best VAT return software, the most efficient VAT software, or simply a VAT-compliant accounting software for small businesses, the purpose is the same: to take the hassle out of VAT, save you time, and keep you on the right side of HMRC. The right VAT software for small businesses doesn’t just tick compliance boxes—it makes running your accounts easier on a day-to-day basis.

Ready to simplify VAT filings?

Explore Swift VAT Pro, a fast, secure, and HMRC-recognized VAT filing platform designed to simplify everything from return prep to submission.

Frequently Asked Questions:

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

What are the key features of Swift VAT Pro?

Swift VAT Pro offers digital VAT return filing, HMRC MTD compliance, multi-user access, cloud-based record keeping, and direct submission to HMRC. It’s ideal for UK businesses looking for simplified tax processes using secure online VAT software.

How do I file my VAT return using Swift VAT Pro?

You can log in at Swift VAT Pro login, import or connect your records, review your VAT summary, and submit directly to HMRC—all within minutes using our Making Tax Digital compliant platform.

Is Swift VAT Pro MTD compliant?

Yes, Swift VAT Pro is fully compliant with HMRC’s Making Tax Digital (MTD) requirements, allowing UK businesses to maintain digital VAT records and file online VAT returns efficiently.

What’s the minimum requirement to submit VAT returns digitally in the UK?

Under MTD rules, UK businesses must use HMRC-recognized VAT return software that supports digital record-keeping and submissions—like Swift VAT Pro. Manual entry is not allowed after MTD enforcement.

Can I switch VAT filing software mid-financial year?

Yes, you can switch to Swift VAT Pro anytime. Just ensure your old VAT records are digitally migrated and reconciled before your next VAT return is submitted.

How much does Swift VAT Pro cost?

You can explore our affordable pricing plans starting at just £5/month. Visit our VAT filing software pricing page to compare features and choose a plan that fits your needs.