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The VAT Return Option - UK only

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Summary

This guide explains how to run your UK VAT Return in Sage 50cloud Accounts.

Description

If you're a VAT registered business in the UK, you need to calculate and submit your VAT return to HMRC. Let's take a look at how to do this.

Resolution

NOTE: Most businesses should now be submitting their VAT Returns under Making Tax Digital (MTD). To find out all you need to know about MTD, visit our Help Centre.


Open the VAT Return

  • Click VAT, then click Clear and click VAT Return.

Now your VAT Return window is open, you can use it to prepare, reconcile and complete your VAT Returns. You can also delete a VAT Return from the list. The following sections of this article explain how to do each.


Prepare the VAT Return

  1. To back up your data click Back up. Read more >
  2. Enter the date range for the VAT Return.
  3. Ensure the Include reconciled transactions check box is clear.
  4. To change what checks run when you calculate the VAT Return, click Settings.
  5. Click Calculate VAT Return.

    If there are any transactions dated before the date range which haven't been reconciled, the Earlier unreconciled transactions window appears.
    • To include these transactions click Include.
    • If you don't want to include these transactions click Ignore.

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, please refer to the VAT reconciliation guide for the VAT scheme you use.

Flag the transactions as reconciled

Once you're happy with all of the values on the VAT Return:

  • Click Reconcile VAT Return then click Yes.

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. For more detailed details on how to submit your MTD VAT Return in Sage 50cloud Accounts - Read more >

    From 8 April 2021, if you're not registered for MTD, HMRC removed the option to submit a VAT Return in XML format to their Gateway. Read more >

    If you've submitted the return to HMRC using another method, click the Mark as submitted check box.

Record Payment or Receipt

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


Delete a VAT return

There may be times when you need to delete a VAT return from the list. For example, if you run a dummy return or duplicate an existing return.

To do this, select the required return from the list and in the top toolbar, click the Delete option Image.

NOTE: We recommend you keep any VAT returns that you have submitted to HMRC.


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