---
title: "MTD-compatible VAT returns drafted and reconciled"
description: "VAT workings and MTD-compatible return drafts prepared in Xero, QuickBooks or Sage for your review. Dedicated accountant, your software, month-to-month."
url: https://ledgerbpo.com/uk/services/vat-returns/
updated: 2026-09-11
publisher: LedgerBPO (SS Support Network LLC)
language: en-GB
---

# MTD-compatible VAT returns drafted and reconciled

LedgerBPO's VAT return preparation services produce MTD-compatible VAT workings and a draft return from your Xero, QuickBooks Online, Sage or FreeAgent file, reconciled to the ledger and the bank, at least seven days before the deadline. A named dedicated accountant prepares, a second reviews, and you or your accountant submit the return to HMRC.

- Since 2020
- US · UK · CA · AU
- Named accountant plus backup
- Your software, no lock-in

[Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) In short

- MTD-compatible VAT workings and draft return, seven days before the deadline
- Input and output VAT reconciled to the ledger, bank and sales records
- You or your accountant review and submit; we never file on your behalf

Updated September 2026 · Reviewed by [Nimra Khalid](https://ledgerbpo.com/team/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.

## 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

1. ### 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.
2. ### 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.
3. ### 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.
4. ### 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.

Our Compliance Desk process

VAT treatment questions that arise between periods, such as whether a service to an overseas customer is outside the scope, go to our Compliance Desk with a 2-business-day answer. The reply is a researched summary with HMRC references for you and your accountant to decide on, not tax advice.

## Software we work in

- [Xero](https://ledgerbpo.com/software/xero/)
- [QuickBooks Online](https://ledgerbpo.com/software/quickbooks-online/)
- [Sage 50](https://ledgerbpo.com/software/sage-50/)
- [FreeAgent](https://ledgerbpo.com/software/freeagent/)
- [Dext](https://ledgerbpo.com/software/dext/)
- [Hubdoc](https://ledgerbpo.com/software/hubdoc/)
- [All 50 platforms](https://ledgerbpo.com/software/)

## 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](https://ledgerbpo.com/get-a-quote/) No setup fee. Month-to-month.

## VAT returns for your industry

- [Construction companies & contractors](https://ledgerbpo.com/industries/construction/)
- [Restaurants & hospitality](https://ledgerbpo.com/industries/restaurants/)
- [E-commerce brands & Amazon sellers](https://ledgerbpo.com/industries/ecommerce/)
- [Marketing agencies & consultancies](https://ledgerbpo.com/industries/agencies/)
- [Retail stores](https://ledgerbpo.com/industries/retail/)
- [Property management companies](https://ledgerbpo.com/industries/property-management/)
- [All 26 industries](https://ledgerbpo.com/industries/)

## 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](https://ledgerbpo.com/security/) and country rules on the [compliance page](https://ledgerbpo.com/compliance/). 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.

Talk to a person

A 20-minute call with someone who runs vat returns every day. No sales script.

[Book a 20-minute call](https://ledgerbpo.com/book-a-call/) [Get a custom quote](https://ledgerbpo.com/get-a-quote/) Compliance note

You approve and release every payment. We never move money, sign returns or give audit opinions. [Country rules](https://ledgerbpo.com/compliance/).

Next step

## Books closed. Invoices paid. Every month.

Tell us what is going on with your books or billing. You will hear from a named person within 1 business day, with a custom quote and a plan for the first close.

- Reply from a named person within 1 business day
- No setup fee, month-to-month
- Your software, your data, no lock-in

Start with a custom quote

[Get a custom quote](https://ledgerbpo.com/get-a-quote/) [Book a 20-minute call](https://ledgerbpo.com/book-a-call/) Or call [+1-657-777-0006](tel:+16577770006) during US, UK or Australian business hours.

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Source: https://ledgerbpo.com/uk/services/vat-returns/ · Contact: https://ledgerbpo.com/contact/ · Full site map for agents: https://ledgerbpo.com/llms.txt