How to check a Flat Rate Scheme VAT Return before submitting it

First step: Check your records and VAT settings

If you use MTD-compatible accounting software, much of your VAT Return will be calculated automatically. Before submitting your return, you should check that:

• all sales for the VAT period have been entered correctly
• the correct Flat Rate Scheme percentage has been applied
• any qualifying capital asset purchases have been treated correctly
• your VAT-inclusive turnover agrees with your accounting records.

Although the software performs the calculations, you remain responsible for ensuring that the information submitted to HMRC is accurate.

Second step: Check the VAT payable to HMRC

If you use MTD-compatible accounting software, Boxes 1 to 5 will usually be calculated automatically. Before submitting your VAT Return, check that the figures are reasonable.

Box 1: VAT due on sales

Box 1 should show the VAT due under the Flat Rate Scheme. This is normally calculated by applying your Flat Rate Scheme percentage to your VAT-inclusive turnover for the period.

Box 2: VAT due on acquisitions

For many Flat Rate Scheme businesses, this box will be zero. However, check whether any transactions require VAT to be reported here.

Box 4: VAT reclaimed on purchases

Most Flat Rate Scheme users cannot reclaim VAT on everyday business purchases. However, VAT may be recoverable on qualifying capital asset purchases costing £2,000 or more including VAT.

Boxes 3 and 5

These boxes are normally calculated automatically by your software.

• Box 3 shows the total VAT due.
• Box 5 shows the amount payable to, or reclaimable from, HMRC.

Before submitting your return, confirm that the figure in Box 5 broadly matches your expectations based on your turnover and Flat Rate Scheme percentage.

Third step: Check your turnover figures and file your return

Your accounting software will normally populate Boxes 6 to 9 automatically but before your submit your VAT Return, you should review the figures to make sure they agree with your business records.

Box 6: Total value of sales

Box 6 should show your total VAT-inclusive turnover for the VAT period. As a Flat Rate Scheme user, this is an important figure because it forms the basis of the VAT calculation in Box 1.

Box 7 – Total value of purchases

Many Flat Rate Scheme businesses will see £0 in this box, depending on how their software is configured and the transactions recorded during the period.

Boxes 8 and 9

For many UK-based businesses, these boxes will also be £0. If your business is involved in overseas transactions that require reporting in these boxes, check the relevant HMRC guidance or seek professional advice to ensure the figures have been included correctly.

Before submitting your return, confirm that the turnover shown in Box 6 agrees with your accounting records for the VAT period.