Filing a VAT return with AccBooks AI

Overview

AccBooks prepares your VAT return automatically from your reconciled transactions and files it directly to HMRC via Making Tax Digital. This guide walks through the complete filing process.

Before you file

Ensure the following are complete before starting a VAT return:

• All transactions in the period are reconciled (no unmatched items).
• Your HMRC connection is active (Settings → VAT → HMRC connection shows Connected).
• The period is not locked (or you have the lock removed if making corrections).

Step 1 — Open the VAT return

Go to VAT → Returns. AccBooks shows your filing obligations from HMRC — each period appears with its due date and status (Open, Prepared, Filed).

Click Prepare on the period you want to file.

Step 2 — Review the return figures

AccBooks populates all nine boxes automatically:

Box	Description	How it’s calculated
Box 1	VAT due on sales	Output VAT on all standard-rated sales
Box 2	VAT due on acquisitions	VAT on EU acquisitions (post-Brexit, rare)
Box 3	Total VAT due (Box 1 + Box 2)	Automatic
Box 4	VAT reclaimed on purchases	Input VAT on purchases
Box 5	Net VAT to pay / reclaim	Box 3 minus Box 4
Box 6	Total value of sales	Net sales (ex-VAT)
Box 7	Total value of purchases	Net purchases (ex-VAT)
Box 8	Total value of EU supplies	Zero post-Brexit for most businesses
Box 9	Total value of EU acquisitions	Zero post-Brexit for most businesses

Click any box figure to drill down to the individual transactions that make up that total.

Step 3 — Make adjustments (if needed)

If you need to adjust any figure:

1. Click the box you want to adjust.
2. Click Add adjustment.
3. Enter the adjustment amount and a reason (required for audit purposes).
4. The adjusted total is shown in a separate column alongside the calculated figure.

Common adjustments include bad debt relief, partial exemption apportionment and voluntary error corrections.

Step 4 — Reconcile against your bank

Click Bank reconciliation check to verify that the VAT liability calculated by AccBooks matches the amount in your VAT control account (code 2200). A red flag here usually means a transaction was classified incorrectly.

Step 5 — Submit to HMRC

When you’re satisfied the figures are correct:

1. Scroll to the bottom of the return.
2. Read the declaration.
3. Click Submit to HMRC.
4. AccBooks transmits the return via the MTD API.
5. HMRC responds with a confirmation reference number, usually within 10 seconds.
6. The period status changes to Filed and a confirmation email is sent to the company owner.

After filing

AccBooks automatically:

• Creates the VAT payment journal (debit VAT liability, credit bank when you pay).
• Locks the period to prevent changes.
• Stores the filed return XML for your records.

When you make the payment to HMRC, reconcile it in AccBooks against the VAT liability account (code 2200) to clear the balance.

Amending a filed return

HMRC’s MTD API doesn’t support amendments — corrections must be made on the next return. For errors under £10,000 (or under 1% of Box 6), add an adjustment to the next period’s return. For larger errors, contact HMRC directly.

Payment deadline

VAT payments are due by the same date as the return — one month and seven days after the period end. Set up a payment reminder under Settings → VAT → Payment reminders.