How do I complete a simple Flat Rate Scheme VAT Return?

First step: What information do I need?

Before you start, make sure you’ve gathered together all the key financial information. This is what you’ll need:

• Your total turnover (including VAT) for the period covered by the VAT return
• Your turnover (including VAT) for the period covered by the VAT return in respect of supplies of goods (not services) to other EC Member States
• The VAT flat rate that applies to your business – remember to reduce this by 1% during your first year as a VAT-registered business.

You’ll also need your login details for HMRC’s Online Services.

This guide assumes that you’re submitting a relatively standard VAT return, and that you’re not claiming Bad Debt Relief or recovering VAT on a single purchase of capital goods over £2,000. If your circumstances are more complicated, it’s best to speak to your accountant.

Second step: Reporting the VAT payable to HMRC

Complete the following boxes:

• Enter the VAT payable to HMRC in Box 1. This is simply your total turnover (including VAT) multiplied by your VAT flat rate.
• Enter 0.00 in Box 2 unless there is VAT due (but not paid) on all goods and related services you acquired in this period from other EC Member States.
• Enter 0.00 in Box 4. Under the Flat Rate Scheme you are not usually entitled to reclaim input tax on purchases.
• Box 3 and Box 5 are calculated automatically. The figure in Box 5 is the amount of VAT to be paid to HMRC for this period.

You can calculate how much VAT you need to pay by using our VAT Online Calculator.

Third step: Reporting your turnover

Complete the following boxes:

• Enter your total turnover including VAT in Box 6 (whole £ only).
• Enter 0 in Box 7.
• Enter your turnover in respect of supplies of goods to other EC Member States (including VAT) in Box 8.
• Enter 0 in Box 9.