In response to a number of my start up clients completing their VAT returns for the first time I have put together a procedure to follow on how to complete a VAT return online and also set up the direct debit.In both cases you will have to log in to HMRC VAT services:
- Log in to www.gov.uk/government/organisations/hm-revenue-customs
- Select HMRC services: sign in or register
- Click the green Sign in > button
- Enter your User ID and password
- Select Next at the security message
- Activate or access online services in “services you can use” section
To set up the Direct debit
- Select Submit a VAT return/Set up VAT Direct Debit instruction in “VAT” section
- Select Set up Direct Debit Instruction in “Direct Debit” section
- Enter your bank details and confirm that you have authority to sign on the account
- The direct debit should be in place within the week
Completion of the VAT return is also accessed from the VAT page:
- Select Submit a VAT return/Set up VAT Direct Debit instruction in “VAT” section
- Then Submit a return
- Select the VAT period due (eg 09 13)
- Complete the boxes in line with your software
- Box 1 – VAT on sales
- Box 2 – VAT on purchases from the EC (often zero for UK companies)
- Box 3 is calculated by the HMRC
- Box 4 – VAT on purchases
- Box 5 is calculated by HMRC (this is the amount you will pay)
- Box 6 – Value of sales net of VAT
- Box 7 – Value of purchases net of VAT
- Box 8 – Value of sales net of VAT to EC states
- Box 9 – Value of purchases net of VAT to EC states
- Select next which will summarise the entries you have made including the amount due
- Once you are happy that the figures are correct Submit the return
- You will have to re-enter the log in details to confirm the figures
- When the return has been submitted there is the option to print/save it as a pdf – we recommend that you do this
- Also remember to keep a copy of the figures used to create the return
This article is a basic guide to the procedures however there may be small changes in the process by HMRC in the future. Nonetheless we hope you find this useful. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Gravesend, Kent – Accountants who “speak your language”