Easily submit VAT returns online

Xero calculates VAT and files VAT returns online securely with HMRC, using software that’s compatible with HMRC systems.

VAT calculated for you

VAT is worked out and included in returns.

Manage VAT transactions

View VAT transaction details and make adjustments when you pay VAT online.

File VAT returns online

Submit VAT returns compatible with MTD for VAT.

Manage CIS with Xero

Manage your CIS deductions, submit returns and simplify compliance.

95% of customers agree Xero payroll helps them stay compliant

*Source: survey conducted by Xero of 254 small businesses in the UK using Xero, May 2024

VAT calculated for you

Use Xero to calculate VAT on transactions, populate and submit VAT returns online with HMRC.

Work with the accrual, flat rate, or cash VAT scheme
Review VAT returns online in a clear, easy-to-understand layout
File VAT returns that are compatible with Making Tax Digital

Manage VAT transactions

Accurately track and manage VAT in Xero.

See details of the transactions that make up the online VAT return
Make adjustments to VAT on transactions like invoices and bills

Learn more about MTD

File VAT returns online

View and check MTD VAT returns and file them online from Xero to HMRC. No need to print or email them.

Check what needs doing, what’s done, and how much is due
Submit VAT returns online quickly and securely to HMRC
Stay up to date with the latest HMRC VAT return requirements

Manage CIS with Xero

Use Xero accounting software to manage CIS deductions, submit returns and simplify compliance.

Automate CIS calculations
File monthly CIS returns directly to HMRC
Check and verify subcontractors
Send statements directly to subcontractors

Learn more about CIS in Xero

FAQs about submitting VAT returns online with Xero

: Yes, this is an option, but you must request approval from HMRC. Most businesses submit VAT returns every three months, but you can apply to file and pay VAT monthly if you prefer. This means you’ll also receive VAT repayments monthly, which could help with cash flow. To request this change, log in to your online VAT account and apply to update your registration details (or ask your accountant to do this for you). HMRC approval is required as this affects VAT filing periods under Making Tax Digital (MTD). Check with HMRC for the latest deadlines for monthly returns.
Yes, this is an option, but you must request approval from HMRC. Most businesses submit VAT returns every three months, but you can apply to file and pay VAT monthly if you prefer. This means you’ll also receive VAT repayments monthly, which could help with cash flow. To request this change, log in to your online VAT account and apply to update your registration details (or ask your accountant to do this for you). HMRC approval is required as this affects VAT filing periods under Making Tax Digital (MTD). Check with HMRC for the latest deadlines for monthly returns.
: Yes, if you’re eligible. HMRC’s VAT Annual Accounting Scheme lets businesses submit one VAT return a year instead of the usual four. The scheme is open to businesses with an estimated VAT-taxable turnover of up to £1.35 million. You also need to make advance payments towards your VAT bill, in instalments. The annual scheme means less admin and might suit certain small businesses, but there are potential drawbacks – so talk to your accountant to see if it’s the right option for you.
Yes, if you’re eligible. HMRC’s VAT Annual Accounting Scheme lets businesses submit one VAT return a year instead of the usual four. The scheme is open to businesses with an estimated VAT-taxable turnover of up to £1.35 million. You also need to make advance payments towards your VAT bill, in instalments. The annual scheme means less admin and might suit certain small businesses, but there are potential drawbacks – so talk to your accountant to see if it’s the right option for you.
: There are several ways to contact HMRC about VAT. You can use HMRC’s digital assistant for general information, or it can transfer you to an advisor. You can also phone HMRC on 300 200 3700 (from the UK) – you’ll need your postcode and VAT registration number. Or you can write to HMRC by post, but they ask that you do this only if your query can’t be answered online or on the phone. The address is: BT VAT, HM Revenue and Customs, BX9 1WR. Replies can take over 15 working days.
There are several ways to contact HMRC about VAT. You can use HMRC’s digital assistant for general information, or it can transfer you to an advisor. You can also phone HMRC on 300 200 3700 (from the UK) – you’ll need your postcode and VAT registration number. Or you can write to HMRC by post, but they ask that you do this only if your query can’t be answered online or on the phone. The address is: BT VAT, HM Revenue and Customs, BX9 1WR. Replies can take over 15 working days.
: Yes, but it isn’t a long-term solution. Making Tax Digital (MTD) is now mandatory for all VAT-registered businesses, meaning you can no longer enter VAT returns manually. Bridging software links spreadsheet data with HMRC’s portal, ensuring compliance with MTD rules. HMRC allows spreadsheets for digital record keeping, but bridging software doesn’t help with other MTD requirements, like fully integrated digital records. Xero’s MTD-compliant software makes managing VAT easier while offering additional features to support your business.
Yes, but it isn’t a long-term solution. Making Tax Digital (MTD) is now mandatory for all VAT-registered businesses, meaning you can no longer enter VAT returns manually. Bridging software links spreadsheet data with HMRC’s portal, ensuring compliance with MTD rules. HMRC allows spreadsheets for digital record keeping, but bridging software doesn’t help with other MTD requirements, like fully integrated digital records. Xero’s MTD-compliant software makes managing VAT easier while offering additional features to support your business.
: You should get a receipt for any purchase for which you want to claim back the VAT. Receipts are proof of the purchase and VAT paid. Should HMRC audit your business, these receipts are evidence that your purchases are for the business and that you’re entitled to VAT. HMRC may accept other forms of evidence for VAT claims, but it’s best to check the gov.uk page on claiming VAT to be sure.
Check the gov.uk page on claiming VAT
You should get a receipt for any purchase for which you want to claim back the VAT. Receipts are proof of the purchase and VAT paid. Should HMRC audit your business, these receipts are evidence that your purchases are for the business and that you’re entitled to VAT. HMRC may accept other forms of evidence for VAT claims, but it’s best to check the gov.uk page on claiming VAT to be sure.
Check the gov.uk page on claiming VAT
: If you buy or sell to businesses abroad, including the EU, Xero helps by assigning these transactions to the correct boxes in your HMRC VAT return. Xero also handles VAT domestic reverse charges with ease.
See how Xero calculates the VAT return box amounts
If you buy or sell to businesses abroad, including the EU, Xero helps by assigning these transactions to the correct boxes in your HMRC VAT return. Xero also handles VAT domestic reverse charges with ease.
See how Xero calculates the VAT return box amounts
: As required, Xero keeps business records for at least seven years. Xero retains all your historic HMRC VAT returns along with a full audit trail making it simple to look back.
See how to view filed VAT returns
As required, Xero keeps business records for at least seven years. Xero retains all your historic HMRC VAT returns along with a full audit trail making it simple to look back.
See how to view filed VAT returns
: Xero automatically calculates and applies domestic reverse charge VAT and wording to your invoices and bills. Domestic reverse charge VAT applies to certain goods and services and, from 1 March 2021, it must also be used for most supplies of building and construction services.
Read more about domestic reverse charge
Xero automatically calculates and applies domestic reverse charge VAT and wording to your invoices and bills. Domestic reverse charge VAT applies to certain goods and services and, from 1 March 2021, it must also be used for most supplies of building and construction services.
Read more about domestic reverse charge