Your first VAT return is where theory becomes real. The key is to make sure your sales, purchases, VAT codes and bank reconciliation are clean before the return is submitted.
Check your VAT registration details
Start with the basics: effective registration date, VAT periods, scheme, software and filing access.
- Confirm the first VAT period
- Check whether you use standard, cash or flat rate VAT accounting
- Make sure MTD software is connected
Review sales invoices
Sales invoices need the correct VAT treatment from the registration date. Mistakes here can change the amount owed to HMRC.
- Check VAT rates on invoices
- Review credit notes and refunds
- Separate pre-registration sales if needed
Review purchase invoices
Input VAT usually needs a valid VAT invoice. Bank payments alone are not always enough evidence.
- Upload supplier invoices
- Check VAT numbers and invoice dates
- Use correct VAT codes for mixed or non-VAT costs
Reconcile the bank
The VAT return should be based on tidy records. Unreconciled bank transactions make it much harder to trust the figures.
- Match payments and receipts
- Investigate unknown transactions
- Check payment processors and card takings
Do final reasonableness checks
Before submitting, compare VAT due with sales levels and check whether any large purchase or sale explains unusual figures.
- Review VAT control account
- Check unusual VAT codes
- Keep a copy of the return and workings
Key takeaway
A first VAT return is much easier when the bookkeeping has been kept tidy from the registration date.
