A VAT return is the report, usually filed every three months, that tells HMRC how much VAT you charged and paid, and whether you owe money or are due a refund.
Published July 2026 · Updated July 2026
A VAT return summarises your VAT for a period (usually a quarter). It shows the VAT you charged customers, the VAT you were charged by suppliers, and the net amount owed to or from HMRC.
Even if you have no VAT to pay, you normally still have to submit a return for each period, a 'nil return'.
The return has nine boxes, but the two that drive everything are your total output VAT and your total input VAT. Box 5 is the net figure, what you pay or reclaim. Good software fills these in automatically from your bookkeeping.
The deadline to file and pay is normally one calendar month and seven days after the end of the VAT period. Missing it can trigger points under HMRC's penalty system, which can lead to fines.
You can no longer type figures into the HMRC website. You must keep digital records and file through MTD compatible software that connects to HMRC directly.
In a quarter you charge customers £4,000 of VAT and pay £1,500 of VAT on purchases:
Most businesses file quarterly. Some choose monthly returns (useful if you regularly reclaim VAT) or annual accounting, depending on their circumstances.
Small net errors can usually be corrected on your next return. Larger errors must be reported to HMRC separately. Keeping accurate digital records reduces the chance of mistakes.
Yes, you normally submit a nil return for the period so HMRC knows you have not simply forgotten to file.
Source: GOV.UK ↗. This glossary is written for small business owners, so definitions are simplified. Tax rates and thresholds reflect 2026/27 UK rules and change over time. Berified does not provide accounting, tax or legal advice; always check the source or a qualified adviser.