· Reviewed by Nimra Khalid
What is VAT return preparation?
VAT return preparation means checking every sale and purchase in a VAT period for the correct rate and treatment, reconciling the VAT control accounts to the ledger, and producing the nine-box figures for submission through Making Tax Digital software. The business or its accountant reviews and submits to HMRC; the preparer supplies the workings and the draft.
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VAT returns: what we do and how it runs
VAT return preparation means checking every sale and purchase in a VAT period for the correct rate and treatment, reconciling the VAT control accounts to the ledger, and producing the nine-box figures for submission through Making Tax Digital software. The business or its accountant reviews and submits to HMRC; the preparer supplies the workings and the draft.
01 / 06 -
What it is
VAT return preparation means checking every sale and purchase in a VAT period for the correct rate and treatment, reconciling the VAT control accounts to the ledger, and producing the nine-box figures for submission through Making Tax Digital software. The business or its accountant reviews and submits to HMRC; the preparer supplies the workings and the draft.
02 / 06 -
What you get
MTD-compatible VAT workings and draft return, seven days before the deadline
03 / 06 -
How it runs
Input and output VAT reconciled to the ledger, bank and sales records
04 / 06 -
Discovery call
A 20-minute call about your VAT scheme, stagger, software, typical supplies and purchases, and whether you or your accountant will submit to HMRC.
05 / 06 -
A named accountant, a backup and a team lead
Inside your own software, on a fixed close calendar, with a reply from a person within 1 business day. Call +1-657-777-0006 or start a quote.
Get a custom quote 06 / 06
Who it is for
Owners who do the VAT return the night before
Every quarter you scroll through Xero hoping the rates are right. You want the workings checked and the draft ready a week early, with a note on anything odd.
Businesses with mixed or partial VAT
Zero-rated food, exempt rent, reverse charge services or the flat rate scheme make the return more than a button press. You want someone who reconciles the treatment every period.
Accountants who want clean VAT files from clients
You review and submit for dozens of clients. Receiving reconciled workings instead of a raw ledger means review takes minutes, not hours.
What's included
- VAT rate and treatment check on every sales and purchase transaction in the period
- Input VAT reviewed for valid VAT invoices and blocked items such as entertaining
- Reverse charge, EU and non-EU purchases and postponed import VAT handled correctly
- Flat rate, cash accounting and annual accounting schemes applied where you use them
- Partial exemption calculations where you make exempt supplies
- VAT control account reconciled to the return and to HMRC payments
- Draft nine-box return produced in your MTD-compatible software
- Digital links maintained: no manual re-keying between records and return
- VAT workings pack with exceptions listed for your review
- Bank reconciliation of VAT payments, refunds and direct debits
- Registration threshold monitoring for businesses under £90,000 turnover
- Compliance Desk answers on VAT treatment questions within 2 business days
Deliverables and KPIs
| Deliverable | KPI we report | Cadence |
|---|---|---|
| Draft VAT return | Ready in your software at least 7 days before the submission deadline | Per VAT period |
| VAT workings pack | Every box supported by a transaction listing and exceptions note | Per VAT period |
| VAT control account reconciliation | Control account agrees to returns submitted and HMRC payments to the penny | Monthly |
| Exceptions list | Transactions with missing invoices or doubtful treatment flagged for your decision | Per VAT period |
| Threshold monitor | Rolling twelve-month turnover tracked against the £90,000 registration threshold | Monthly, unregistered businesses |
| Submission log | Confirmation and payment reference stored after you or your accountant submit | Per VAT period |
KPIs are what we measure and report, agreed per engagement. Service-level commitments are set in your agreement.
How it works
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Discovery call
A 20-minute call about your VAT scheme, stagger, software, typical supplies and purchases, and whether you or your accountant will submit to HMRC.
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Access and scheme review
You grant adviser access to Xero, QuickBooks Online, Sage or FreeAgent. We check the VAT settings, tax rates and scheme, and reconcile the VAT control account to the last return submitted.
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First period in parallel
A named accountant prepares the workings and draft for the current period alongside your usual process so you can compare box by box before relying on us.
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Period-by-period preparation
Each period the workings and draft arrive seven days early through the LedgerDesk portal, reviewed under Two-Tier Review. You or your accountant submit, and the control account is reconciled monthly.
Software we work in
How much does vat returns cost?
VAT return preparation is priced as a fixed fee per return or per month, based on transaction volume, the VAT scheme you use, and whether partial exemption or international purchases are involved. It is usually bundled with bookkeeping. Pricing depends on volume and scope, so we send a custom quote within 1 business day.
What moves the quote
- Transaction volume in the period and quality of source documents
- Scheme: standard, flat rate, cash accounting, annual accounting
- Partial exemption, reverse charge or import VAT complexity
- Whether monthly bookkeeping is included or done by your own team
Market benchmarks
| Market | Typical range | Source |
|---|---|---|
| UK | Fixed-fee bookkeeping including VAT returns runs £100 to £1,500 per month; £150 to £400 for 50 to 200 transactions; hourly £20 to £55 | UK provider pricing surveys (2026) |
Third-party ranges for orientation, not our prices.
Get a custom quote No setup fee. Month-to-month.
VAT returns for your industry
Security and compliance
- Adviser access only; submission and payment stay with you or your accountant
- MFA on every login, per-client access log, GDPR data-processing agreement available
- No local downloads; workings stay inside your software and the LedgerDesk portal
Full control list on the security page and country rules on the compliance page. Certifications are listed only when held.
Frequently asked questions
How much do VAT return preparation services cost?
Pricing depends on volume and scope, and we send a custom quote within 1 business day. As a market reference, UK fixed-fee bookkeeping including VAT returns runs £100 to £1,500 per month, with £150 to £400 typical for 50 to 200 transactions, and hourly rates of £20 to £55 (UK provider pricing surveys, 2026). We quote per return or per month.
Do you submit the VAT return to HMRC?
No. We prepare the MTD-compatible workings and the draft return inside your software. You or your accountant review and submit through the software's MTD connection. Keeping the submission with you means the person legally responsible sees the figures before they go, and we never handle HMRC payments.
Is your work compatible with Making Tax Digital for VAT?
Yes. We prepare the return inside MTD-compatible software such as Xero, QuickBooks Online, Sage or FreeAgent, and keep digital links between the records and the return so nothing is re-keyed. Businesses moving from spreadsheets can use our accounting software setup service to get onto compliant software first.
Which VAT schemes can you handle?
Standard accounting, cash accounting, the flat rate scheme and annual accounting, plus partial exemption for businesses with exempt supplies. Each has different rules on when VAT is due and what can be reclaimed, and the scheme is documented at onboarding so every period is prepared the same way.
How do you deal with reverse charge and imports?
Domestic reverse charge for construction services, reverse charge on services bought from overseas suppliers, and postponed import VAT accounting each have their own boxes and treatment. We check the supplier, the nature of the supply and the evidence, then post it so the return and the ledger agree.
What do I get seven days before the deadline?
A draft return in your software, a workings pack listing the transactions behind each box, a reconciliation of the VAT control account, and an exceptions list of anything with a missing invoice or doubtful treatment. You decide on the exceptions, we update the draft, and you or your accountant submit.
Can you work with my accountant rather than replace them?
Yes, and many clients work that way. We do the monthly bookkeeping and VAT workings; your accountant reviews, submits and handles year-end accounts and corporation tax. The accountant receives reconciled workings rather than a raw ledger. Our UK bookkeeping service covers the monthly side.
What if my turnover is close to the VAT threshold?
We monitor rolling twelve-month turnover against the £90,000 registration threshold every month and tell you when you are approaching it. Registration itself, and the decision on voluntary registration, are for you and your accountant. Once registered, we set up the VAT codes in your software and prepare the first return from the effective date.
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