Prepare the VAT Return

1. Click Back up to back up your data.  
2. Enter the date range for the VAT Return.
3. Ensure the Include reconciled transactions checkbox is clear.
4. To change what checks run when you calculate the VAT Return, click Settings.
5. Click Calculate VAT Return.
   
   If there are unreconciled transactions dated before the selected date range, the Earlier unreconciled transactions window appears.
   • To include these transactions, click Include
   • If you don't want to include these transactions, click Ignore

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Reconcile the VAT Return

Verification results

To see the results of the verification checks, click View results.

Make adjustments

If required, you can use the Make adjustments option to adjust the figures on your final VAT Return. You need to do this before you reconcile the VAT Return.

Add attachments

You can attach documentation to support any adjustments you make. To do this, click Add attachments.

Reports

Run the VAT Return and Reconciliation reports to check the figures on your VAT Return. For further help, see our VAT reconciliation article for the VAT scheme you use.

Flag the transactions as reconciled

When you're happy with the values on the VAT Return:

• Click Reconcile VAT Return then click Yes

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Complete the VAT Return

VAT transfer

This option transfers the values from the sales and purchase tax control accounts into your VAT liability.

1. Complete the VAT transfer area as follows:
   
   

   Date	Enter the date for the VAT Transfer.
   Sales Tax Amount	This is the amount from Box 1 on the VAT Return. You can amend this if required.
   Purchase Tax Amount	This is the amount from Box 4 minus the amount from Box 2 on the VAT Return. You can amend this if required.

2. Click Post Journal.

Submit the VAT Return to HMRC

To submit your VAT Return electronically to HMRC:

• Click Submit online. Follow our submit your MTD VAT Return in Sage 50 Accounts article for more information. 
   NOTE: You're no longer able to submit via the HMRC Gateway. 
  If you've submitted the return to HMRC using another method, click the Mark as submitted checkbox.

Record Payment or Receipt

Once complete, you can record the payment or receipt for your VAT Return.