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Submit a VAT return to HMRC using MTD in QuickBooks Online

SOLVEDby QuickBooksQuickBooks Online3081Updated 2 weeks ago

If you're a business owner in the UK, you're probably aware that Making Tax Digital (MTD) is now in effect. This means that you need to submit your VAT return electronically to HMRC using MTD-compliant software.

In this article, we'll walk you through the process of submitting your VAT return through QuickBooks Online. We'll also give you some tips on recording VAT payments and how to change the filing status of a VAT return.

Before you begin

The process of submitting a VAT return in QuickBooks is relatively straightforward. However, there are a few things that you need to check before making a submission to ensure that everything goes smoothly. These are:

  1. Make sure you set up VAT in QuickBooks and that you are using the VAT Registration number. This is essential for accurate reporting under MTD.
  2. You need to have signed up for MTD for VAT with HMRC.
  3. Make sure you set up the MTD feature in QuickBooks in order to submit your returns.

Submit a VAT return using MTD

  1. Go to Taxes, then select VAT (Take me there).
  2. Select the Returns tab.
  3. Next to the VAT return you need to submit, select Prepare return.
    • Select Error check your return from the ▼dropdown options to check that everything on your return is posted correctly.
  4. When you're ready, select Submit to HMRC.
  5. Tick the I declare the information is true and complete checkbox.
  6. Select Submit to HMRC. Wait until you see the confirmation message and don't close this page until the receipt confirmation shows.
  7. Once HMRC accepts the submission, select Done.

That's it! When you submit a return to HMRC, you'll receive an email confirmation containing details about your submission and VAT return.

Change the filing status of a VAT return

If you have filed your VAT return and it has been rejected, don't worry – you can change the filing status from rejected to filed. Here's how:

  1. Go to Taxes, then select VAT (Take me there).
  2. Select the Returns tab.
  3. Next to the rejected VAT return, select Resubmit return.
  4. Finally, select Mark as filed.
    Note: Once the return is marked as filed you'll no longer have the option to resubmit the period to HMRC. If you need to resubmit the period, you'll need to do this manually through HMRC.

Record VAT payments

It’s important to record every time money goes in or out of your bank account so that your books balance at the end of each tax year. When you make a VAT payment to HMRC, or receive a refund from them, you need to record all VAT payments and refunds before matching them with the associated bank transactions in QuickBooks. 

Need more help?

Here's a list of MTD articles. If you have a question about MTD, post it to our Community and start a discussion with an expert.

*QuickBooks MTD software currently supports Standard, Cash and Flat Rate schemes. QuickBooks Online Bridging Software supports Standard and Cash schemes. Businesses whose home currency is not GBP are currently not supported for MTD.

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