A VAT return checklist should make the figures traceable, identify uncertain transactions and leave enough time for review and payment. It is not simply a reminder to run the software report shortly before the deadline.
In this article
- Gather sales and purchase records
- Reconcile transactions and evidence
- Review VAT treatment and adjustments
- Check the return before submission
Begin with the return period, VAT scheme and actual deadline. Then collect complete sales and purchase information, reconcile the records and review exceptions. Keep responsibility for preparing, approving, submitting and paying clearly assigned.
Confirm the return you are preparing
GOV.UK’s return guidance says returns are usually quarterly and are still required where there is no VAT to pay or reclaim. The usual online deadline is one calendar month and seven days after period end, but check the actual account and scheme.
Record the period start and end, submission date and payment clearance requirement. Do not assume that submitting a return also authorises or completes payment. Put internal preparation and approval dates ahead of the deadline.
Confirm whether invoice-based accounting, cash accounting, flat rate or another relevant arrangement applies. A report with the wrong scheme settings can produce plausible but incorrect totals.
Gather the complete transaction set
Collect sales invoices, credit notes, purchase invoices, expense records and payment-provider reports. Include every relevant business bank and card account, cash activity and transactions paid personally on behalf of the business.
HMRC’s VAT recordkeeping guidance covers required evidence and digital records. Check the software and any required digital links; manually recreating totals in an unrelated spreadsheet should not be assumed to satisfy the applicable process.
| Information | Practical check |
|---|---|
| Sales and credits | Complete numbering, correct customer and linked adjustments |
| Purchases | Valid invoices, no duplicate capture and business purpose |
| Receipts and payments | Allocated correctly where scheme timing requires them |
| Online settlements | Gross activity, fees and refunds explained |
| Overseas transactions | Relevant import, export and reverse-charge evidence |
| Adjustments | Method, source documents and reviewer recorded |
Identify special transactions separately rather than coding them according to the bank description. A payment labelled “international software” may require questions that an ordinary domestic purchase does not.
Reconcile before reviewing VAT codes
Match bank and card movements, allocate customer and supplier payments and investigate missing documents. Compare sales and purchases with the bookkeeping reports so omissions are visible.
Review credits, cancelled invoices and refunds. Ensure the same adjustment has not been recorded both from a supplier document and again from the bank movement.
Illustrative example: an online platform pays £4,700 after £5,000 of sales and £300 of fees and refunds. The deposit alone does not provide the full sales record or explain the VAT treatment of each deduction. Use the underlying settlement report. The invented amounts illustrate evidence, not a VAT computation.
Review the transactions most likely to go wrong
Check private or mixed-use spending, entertainment, vehicles, exempt activity and unusual assets. HMRC’s reclaim guidance sets out restrictions and supporting evidence; a VAT code selected by software does not establish entitlement.
If cash accounting applies, verify which invoices have actually been paid and any transactions excluded from that scheme. The cash-accounting guidance explains the link to customer and supplier payments.
Review uncertain overseas supplies, import VAT and reverse charges with the adviser using the actual documents. Do not infer one treatment for every overseas payment.
Keep a query list with reference, amount, concern, owner and deadline. Resolve significant questions before approval, and document the treatment agreed.
Check the result and submit deliberately
Compare the draft with previous periods and current trading. Explain unexpected changes in VAT due or recoverable. A large repayment or liability may be correct, but it deserves a traceable explanation. Reconcile the VAT control balance with the draft return and amounts already paid or received. Keep a schedule of timing differences and adjustments, with document references, so a reviewer can follow the link between the ledger and the proposed submission.
Confirm who approves the return, who submits it and who pays. HMRC’s submission guidance requires compatible Making Tax Digital software for the ordinary route and describes exceptions. Confirm the applicable route, retain the submitted figures and acknowledgement, and check the account status. Save the payment evidence separately.
If you find an error in a previous return, do not simply delete historical entries and hope the next report fixes it. HMRC’s correction guidance provides the relevant route; agree the facts and process with the adviser.
For a structured preparation conversation, discuss EPOS VAT support alongside bookkeeping services. Use pricing information and define document deadlines, review and payment responsibilities explicitly.