VAT for Small Business / Lesson 5 of 8
Filing a VAT return
Nine boxes. Two of them are calculated for you. It is shorter than it looks.
The short answer
- ✓ Most small businesses only complete boxes 1, 4, 6 and 7
- ✓ The return and payment are both due one month and seven days after the quarter
- ✓ VAT returns must be filed through compatible software
- ✓ Boxes 6 and 7 are the figures HMRC reconciles against your other filings
The nine boxes
| Box | What goes in it |
|---|---|
| 1 | VAT due on sales |
| 2 | VAT due on acquisitions from Northern Ireland arrangements |
| 3 | Total output VAT, boxes 1 and 2 added, calculated for you |
| 4 | VAT reclaimed on purchases |
| 5 | Net VAT to pay or reclaim, calculated for you |
| 6 | Total sales excluding VAT |
| 7 | Total purchases excluding VAT |
| 8 | Goods supplied under Northern Ireland arrangements |
| 9 | Goods acquired under Northern Ireland arrangements |
For most small businesses only boxes 1, 4, 6 and 7 need filling in. Boxes 3 and 5 are worked out for you, and 2, 8 and 9 are usually nil.
Deadlines
Quarter ends 31 March
Return and payment due 7 May
Same deadline for both. Direct debit collects
a few working days later, which is a small
extra cushion.Making Tax Digital applies to VAT already
VAT-registered businesses must keep digital records and file through compatible software. The HMRC website is no longer an option for VAT returns, so software is a requirement of registration rather than a choice.
The bit HMRC does not spell out
Boxes 6 and 7 are the ones that get businesses noticed. They report total sales and purchases, and HMRC compares them against the VAT figures and against your other filings. A box 6 that does not reconcile with the turnover on your tax return is a visible inconsistency.
People treat 6 and 7 as informational because no VAT is calculated from them. They are the cross-check.
Repayment returns
If box 4 exceeds box 3 you are owed money. Repayments are usually paid within days, though a first repayment claim or an unusually large one may be checked before release. That is routine rather than an accusation.
Common mistakes
- Treating boxes 6 and 7 casually. They are the reconciliation.
- Including VAT in boxes 6 and 7. Those are net figures.
- Filing on time but paying late. Both are due on the same date.
- Assuming you can still use the HMRC website. VAT filing requires software.
Try it on your own numbers
This is the same calculator as the full tool page, using 2026/27 rates.
Your VAT return
Work out the VAT you owe HMRC (or can reclaim) for the period.
UK standard rate is 20%. Reduced rate 5%, zero rate 0%.
Compare paying a single flat-rate percentage of your VAT-inclusive (gross) turnover instead of the standard method. You generally cannot reclaim input VAT on the Flat Rate Scheme.
Sector rates vary (e.g. 14.5% IT consultancy, 12% catering). Limited cost traders use 16.5%.
VAT due = output VAT − input VAT (Box 5 of your return). A negative figure means HMRC owes you a repayment.
- Box 1 - Output VAT on sales
- Box 4 - Input VAT reclaimed
- −
- Box 5 - Net VAT due
- Box 6 - Net sales (ex VAT)
- Box 7 - Net purchases (ex VAT)
Gross sales (inc VAT)
VAT kept from customers
Flat Rate vs standard method
Standard method
Estimate only. Always reconcile against your records before submitting via Making Tax Digital.
Projected VAT across the year
If every quarter looked like this one, here is how much VAT would build up over four returns.
Set aside roughly each quarter - about a week - so the bill never surprises you.
Compare saved periods
| Period | Output VAT | Input VAT | Net due (Box 5) | |
|---|---|---|---|---|
| Year to date (saved) |
Key takeaways
- ✓ Most small businesses only complete boxes 1, 4, 6 and 7
- ✓ The return and payment are both due one month and seven days after the quarter
- ✓ VAT returns must be filed through compatible software
- ✓ Boxes 6 and 7 are the figures HMRC reconciles against your other filings
Check you have got it
3 quick questions. No score is kept, and you can change your mind.
1. When is a VAT return and payment due?
2. Do boxes 6 and 7 include VAT?
3. Can you still file a VAT return on the HMRC website?
Sources
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