Skip to main content

Your VAT return

The VAT return turns your categorised bank lines, invoices and purchases into the nine boxes for one quarter. Nothing is sent to HMRC. You file these figures yourself.

Your VAT return at 1280

  1. Open VAT return and choose the quarter. The first line names the scheme and method behind the figures.
  2. Read the nine boxes in order. Each shows its working beneath it, and no box is treated as more important than another.
  3. If lines have no category, the screen shows a range such as "At least £0.00, up to £2.10" instead of boxes. Press Needs a category, categorise those lines, then return.
  4. If income lines are waiting to be confirmed, press Needs confirming and confirm each one.
  5. Once the quarter has ended and Filing shows no refusal, press Finalise this quarter and confirm. The confirmation states that nothing is submitted to HMRC.
  6. If a record changes after filing, the filed figure stays and the change is noted beside it. File an updated version stores a second record and keeps the first.

Cases

  • The range is exact arithmetic, never a guess. Each uncategorised line is taken at the rate on its own date, and filing is still refused until every line has a category.
  • Unconfirmed income is excluded from Boxes 1 and 6 and cannot be filed.
  • Purchases waiting for evidence cannot be filed. Add the supplier VAT number or VAT invoice, or accept zero VAT.
  • A quarter with no bank data is not shown as £0.00. The screen says nothing has been imported.
  • Flat Rate Scheme, cash basis: flat-rate VAT is computed per invoice and summed, using ROUND_HALF_UP, so £0.465 becomes £0.47.
  • Flat Rate Scheme, invoice basis: an invoice counts in the quarter of its tax point, which is the invoice date or the first payment if that came earlier.
  • Standard Scheme, invoice accounting: Box 1 is the VAT on invoices issued, Box 6 is net of VAT and Box 7 is net of all purchases.
  • Standard Scheme, cash accounting: the VAT on a sale counts when each payment reaches your bank, in proportion to what was paid.
  • Not VAT registered: the screen reads "Nothing to file" and shows no boxes.
  • Members and accountants can read all nine boxes but are not offered the finalise button.

Good practice

  • Clear To classify and Needs confirming before the quarter ends, so the range closes to one figure.
  • Read the tax-point sentence and confirm it with your accountant before you file.
  • Treat filed figures as locked. A correction under £10,000 net adjusts on the current return, and above it needs form VAT652. The app records the correction and says which applies, but files nothing.