VAT Returns & MTD Filing
For London Businesses
FCCA-led VAT accountants based in Wimbledon, serving small businesses across South West London and the UK. We prepare, reconcile, and submit your quarterly VAT returns under Making Tax Digital, on time, every quarter, on a fixed fee agreed before we start.
Muhammad Bilal, FCCA
Every return is reviewed by a qualified accountant, not just software.
Get a Free VAT Quote
When Is Your VAT Return Due?
For quarterly filers, your VAT return deadline is one calendar month and seven days after the end of your VAT period. This date covers both filing and cleared payment reaching HMRC's account, not just sending it.
Quarter 1
31 March
VAT period ends
7 May
Deadline
Quarter 2
30 June
VAT period ends
7 August
Deadline
Quarter 3
30 September
VAT period ends
7 November
Deadline
Quarter 4
31 December
VAT period ends
7 February
Deadline
We manage your entire submission cycle and strongly recommend setting up a Direct Debit, so a bank holiday or a busy week never turns into a missed payment.
Making Tax Digital: Mandatory Since April 2022
Since 1 April 2022, every VAT-registered business in the UK must keep digital records, use MTD-compatible software, and submit returns via a digital link to HMRC's systems. Manual entry through the old HMRC portal is no longer permitted, regardless of turnover.
Xero VAT Submissions
Full setup, bank feed connection, VAT return review, and MTD-linked digital submission direct to HMRC through Xero.
QuickBooks & FreeAgent
VAT configuration, MTD-linked filing, and reconciliation for businesses on QuickBooks, FreeAgent, or Sage.
Bridging Software
Still using spreadsheets? We configure bridging software to create the required digital link to HMRC without changing your workflow.
Not yet on cloud accounting? We migrate your records and configure your software as part of onboarding, at no extra charge.
Choosing the Right VAT Scheme Saves Money
Most businesses default to the Standard Rate scheme when they register for VAT. Depending on your turnover, margin, and sector, a different scheme can reduce either your bill or your admin burden considerably.
| VAT Scheme | How It Works | Best For |
|---|---|---|
| Standard Rate | Pay VAT on invoices issued, claim input VAT on purchases | Most VAT-registered businesses with significant input VAT |
| Flat Rate Scheme | Pay a fixed percentage of gross turnover to HMRC, regardless of actual input VAT | Low-cost service businesses with turnover under £150,000 |
| Cash Accounting Scheme | Account for VAT when payment is received or made, not when invoiced | Businesses with slow-paying customers or cash flow pressure |
| Annual Accounting Scheme | One VAT return per year with interim advance payments | Businesses with predictable turnover wanting minimal admin |
| Margin Scheme | VAT calculated on margin only, not the full selling price | Second-hand goods, antiques, vehicles, art |
We model each scheme against your actual figures before recommending anything. For a closer look at whether the Flat Rate Scheme suits your business specifically, see our Flat Rate VAT Scheme guide →
VAT Return Boxes 1–9 Explained
Errors in VAT return boxes are one of the most common triggers for HMRC compliance checks. Here is what each box requires and where businesses most often go wrong.
Box 1
VAT Due on Sales
Output VAT charged on all your taxable supplies during the period.
Common error: missing reverse charge VAT; omitting import VAT
Box 2
VAT on EU Acquisitions
VAT on goods acquired from EU VAT-registered businesses. Post-Brexit, this applies to Northern Ireland businesses only.
Common error: GB-only businesses completing this box when it should be left blank
Box 3
Total VAT Due
Box 1 + Box 2 combined. The total output VAT you owe HMRC before claiming input VAT.
Common error: arithmetic mistakes when entered manually rather than via software
Box 4
VAT Reclaimed on Purchases
Input VAT on eligible business purchases and expenses during the period.
Common error: claiming VAT on client entertainment, personal expenses, or invoices without a valid VAT number
Box 5
Net VAT Position
Box 3 minus Box 4. A positive figure means you owe HMRC; a negative figure means HMRC owes you a refund.
Common error: not claiming a VAT repayment when the box shows a negative figure
Box 6
Total Value of Sales (Ex-VAT)
All outputs excluding VAT, including zero-rated and exempt supplies as well as standard-rated.
Common error: including VAT in the figure; omitting zero-rated supplies from the total
Box 7
Total Value of Purchases (Ex-VAT)
All business purchases excluding VAT, used for cross-checking input VAT reclaimed in Box 4.
Common error: including personal or non-business purchases; double-counting
Box 8
Value of EU Supplies
Goods supplied to EU VAT-registered customers. Post-Brexit, this applies to Northern Ireland businesses only.
Common error: GB-only businesses completing this box. Should be left blank unless you trade in NI.
Box 9
Value of EU Acquisitions
Goods acquired from EU VAT-registered businesses. Post-Brexit, this applies to Northern Ireland businesses only.
Common error: same as Box 8. Leave blank for all GB-only businesses.
We verify all nine boxes before submission, cross-referencing your software records against your bank statements and purchase invoices.
What You Risk if You Miss a VAT Deadline
HMRC has operated a points-based penalty system for VAT returns since January 2023, and the late payment penalty rates increased from 1 April 2025. A single missed quarter followed by a late payment can escalate faster than most businesses expect.
Late Submission Penalties
Late Payment Penalties (Current Rates)
These rates apply to VAT payments due on or after 1 April 2025 and change automatically when the Bank of England base rate moves. HMRC also pays repayment interest on VAT refunds it owes you, currently Bank Rate minus 1%.
When Must You Register, and When Should You?
Registering late means owing VAT on past sales even if you never charged it. Registering voluntarily is not always the right call either. We model the actual numbers before recommending either way.
£90,000
Registration threshold
£88,000
Deregistration threshold
You must register for VAT within 30 days of your rolling 12-month taxable turnover exceeding £90,000, and you can apply to deregister if it later falls below £88,000. Voluntary registration below the threshold can suit businesses whose customers are mainly VAT-registered, or who carry significant input VAT on their own costs.
For the full mechanics, including the monthly rolling check and the 30-day forward-look test, see our complete guide: VAT Registration UK 2026 →
Beyond Basic Quarterly Filing
We regularly handle VAT situations that go beyond straightforward quarterly returns. These are areas where errors are costly and specialist knowledge protects your position.
Reverse Charge VAT
Construction sector CIS domestic reverse charge, supply of staff, and digital services. See our dedicated guide: Reverse Charge VAT for Construction →
Partial Exemption
Businesses with both taxable and exempt supplies, including financial services, insurance, and property, require careful apportionment of input VAT.
VAT on Property
Option to tax, capital goods scheme, and transfers of going concerns, relevant to commercial landlords and property developers.
Import VAT & Postponed VAT Accounting
Post-Brexit PVA for businesses importing goods, so import VAT doesn't create an unnecessary cash flow hit.
E-Commerce VAT
Marketplace VAT rules, OSS registrations, and digital service taxes for online sellers. See our guide: VAT for Amazon, Shopify & Etsy Sellers →
HMRC VAT Investigation
If HMRC opens a VAT compliance check, we respond on your behalf, provide the records requested, and represent you throughout.
What Makes Our VAT Service Different
Most VAT accountants file your return and move on. We treat every quarterly return as a compliance review, checking for errors, identifying scheme opportunities, and flagging anything unusual before HMRC does.
All nine boxes verified before every submission
We cross-reference your software records against your bank statements and purchase invoices before filing anything.
Scheme review on joining and annually
We check whether your current VAT scheme is still optimal as your turnover and costs evolve.
Direct HMRC liaison if a query arises
As your authorised agent, we respond to any HMRC queries about your VAT position. You never need to deal with them directly.
Error correction service for past returns
Spotted an error in a previous return? We correct it using the appropriate method, voluntary disclosure or next-return adjustment, before HMRC finds it first.
Fixed fee, agreed before we start
Your VAT service is quoted as a fixed fee once we understand your volume and complexity. No per-quarter surprises.
MTD for VAT and MTD for Income Tax Are Not the Same Thing
MTD for VAT (mandatory since 2022) and MTD for Income Tax Self Assessment (ITSA) are two separate HMRC obligations. Since 6 April 2026, sole traders and landlords with combined gross income above £50,000 are also required to use MTD for ITSA. Partnerships are not yet in scope.
MTD for Income Tax: What You Need to Know
MTD for ITSA requires quarterly digital updates of your income and expenses, replacing the annual Self Assessment tax return for those in scope. A final declaration is still due by 31 January each year.
We cover this in full on our dedicated service page: MTD for Income Tax: Complete Guide & Compliance Service →
In Force: April 2026
Income over £50,000
From April 2027
Income over £30,000
From April 2028
Income over £20,000
Wimbledon, South West London & UK-Wide
Our office is at Lombard Business Park, Wimbledon, SW19 3TZ. We offer in-person meetings for local clients and a fully remote VAT service for businesses anywhere in the UK, so distance is rarely a barrier to working with us.
If you're searching for a VAT accountant with genuine face-to-face access in South West London, our Wimbledon team offers that alongside the remote convenience most online-only firms provide.
Frequently Asked Questions
About VAT Returns in London
Ready to Hand Your VAT Over to a Qualified London Accountant?
Stop tracking quarterly deadlines, worrying about penalty points, and reconciling VAT boxes yourself. Protax handles your full VAT position: scheme selection, bookkeeping, reconciliation, MTD submission, and HMRC liaison on a transparent fixed fee.
- Free initial VAT assessment, no obligation
- Response within one business day
- All nine VAT boxes verified before every submission
- FCCA-led, HMRC authorised
- Xero, QuickBooks, FreeAgent & Sage supported
- Fixed fee, agreed upfront, no per-quarter billing
Already a client? Go to our Contact page for existing client queries.
Request Your Free VAT Quote
Tell us about your business and VAT situation. We'll send a clear, fixed-fee proposal by email.
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