Create and submit your VAT Return under MTD
If you’ve registered with HMRC for Making Tax Digital (MTD) for VAT, and you’ve switched on the MTD functionality in your Sage Business Cloud Accounting service, you can then calculate and submit your VAT Return under MTD.
- 1. Go to Reporting, then click VAT Returns.
- 2. Click Create VAT Return.
Sage Business Cloud Accounting automatically looks for the next VAT obligation period that HMRC require you to submit and sets the dates on the return for you.
An obligation period is effectively the from and to dates of a VAT return.
- 3. If your authentication with HMRC has expired, a prompt appears on-screen. Before you can proceed any further with creating a VAT Return under MTD, you must click Authenticate and follow the instructions to authenticate with HMRC again.
- 4. Click Calculate.
- 5. If you have any transactions dated before the obligation period that weren’t included on a previous return, a prompt appears on-screen.
To view these transactions, click View prior period transactions.
To include these transactions in this VAT return, click Yes or to discard them, click No.
If you click No, you aren’t prompted to include these transactions again on future returns.
- 6. To adjust any values on the VAT return, click Adjust next to the relevant field. Enter the amount you want to change the value by and a reason for the change, then click Save.
- 7. To check the transactions included in each box, click Detailed Report then click PDF.
The report automatically downloads and when it’s ready you receive a notification on the menu bar. Click the report, which then opens in a new window or tab.
- 8. To produce a PDF copy of the return, point to the Print drop-down, click PDF, then from your browser menu, choose to print or save it.
To help with Making Tax Digital compliance, if you need to send your VAT Return values to a CSV file, point to the Print drop-down, then click CSV.
- 9. Once you’re happy that the values are correct, do one of the following:
- To submit the return to HMRC now, select Submit online to HMRC then click Save. When prompted, click Finalise and Submit to complete the submission.
- If you don’t want to complete the VAT return just yet, select Save this return and submit it later then click Save. You can then return to it at a later time to submit it.
If you choose to submit the return now or later, the transactions included in the return are marked as VAT reconciled and you can make limited changes to them.
Once your VAT return has submitted successfully, a prompt appears on-screen indicating this. Once you’re ready to do so, you can record the payment or refund of VAT to/from HMRC as appropriate.
Failed VAT submission
If for any reason your submission to HMRC wasn’t successful, the reason for the submission failing appears on-screen. You should fix the error and try submitting again.