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VAT guide

VAT checklist (UK)

A practical checklist of the records, checks, and dates that keep VAT returns calm and accurate.

VAT Making Tax Digital Bookkeeping

Updated 5 February 2026

VAT checklist (UK)

VAT can feel simple on paper (sales, purchases, submit the return) and messy in real life. The good news: if your records are consistent, VAT becomes a routine rather than a last‑minute scramble.

This guide is a web summary of our VAT checklist. You can use it as a quick monthly/quarterly “have we got everything?” run‑through.

Who this is for

  • VAT‑registered sole traders, partnerships, and limited companies
  • Businesses preparing their own VAT records (even if someone else submits the return)
  • Anyone who wants fewer surprises when the VAT deadline rolls around

Before you start (two-minute setup)

  1. Know your VAT period (monthly, quarterly, annual) and the dates it covers.
  2. Know the scheme you’re on (standard, cash accounting, flat rate, etc.).
  3. Use one system of record where possible (accounting software, spreadsheets, or a tidy folder structure).

If you’re not sure which scheme you’re on, don’t guess—ask. It affects what counts as “in” and “out” for VAT.

Checklist: sales you should capture

Capture every sale/invoice that falls in the VAT period, including:

  • Sales invoices (numbered and dated)
  • Till reports / Z‑reads (if you use a POS system)
  • Online sales summaries (Shopify, Etsy, Amazon, Stripe, PayPal, etc.)
  • Credit notes and refunds
  • Deposits and part‑payments (treatment can vary by scheme)
  • Exports / services to customers outside the UK (keep supporting evidence)

Helpful habit: keep a simple note of why something is outside VAT (for example, exempt or outside scope). That makes future queries much easier.

Checklist: purchases and expenses you should capture

For purchases where you’re reclaiming VAT, keep:

  • Supplier invoices (not just order confirmations)
  • VAT receipts for smaller purchases
  • Import paperwork (where relevant)
  • Mileage / vehicle costs evidence (VAT rules can be stricter here)
  • Home working / mixed‑use costs notes (how you split business vs personal)

Avoid the common trap: you usually can’t reclaim VAT just because the bank transaction exists. You need proper VAT evidence.

Checklist: bank and cash control

  • Bank statements for the full VAT period
  • Business card statements (if separate)
  • Cash takings records (if you handle cash)
  • Proof of any transfers between accounts (so you don’t double-count income)

Practical tip: reconcile as you go. A “VAT quarter” is a long time to remember what that £47.32 was.

Checklist: VAT checks that prevent errors

Run these quick checks before submission:

  • VAT rate sanity check: do the VAT figures “look right” compared to sales?
  • Big movements: any unusually large input VAT claims? If yes, confirm evidence.
  • Fuel / vehicle: confirm the correct treatment (this is a frequent pain point).
  • Reverse charge / construction industry rules (if applicable): check you’ve applied the right treatment.
  • Partial exemption (if applicable): ensure you’re reclaiming correctly.

Checklist: key dates and admin

  • Confirm the filing deadline for your period (it’s often one month and seven days after the period end, but not always).
  • Confirm the payment date and method (Direct Debit timings differ).
  • Save:
    • the submitted return summary
    • the supporting reports (sales/purchase VAT detail)
    • the evidence folder for the period

Making Tax Digital (MTD) basics

If you’re VAT‑registered, you’ll typically need to keep digital records and submit via MTD‑compatible software.

Practical checklist:

  • Are your VAT codes set up sensibly (standard, zero‑rated, exempt, etc.)?
  • Are you avoiding manual copy‑and‑paste between systems where “digital links” are required?
  • Do you have a repeatable workflow for the quarter end?

Common VAT pitfalls (and how to avoid them)

  • Mixing personal and business spending → keep notes and separate where possible.
  • Missing credit notes → refunds reduce output VAT; capture them.
  • Claiming VAT without the right evidence → keep proper invoices/receipts.
  • Ignoring scheme rules → cash vs invoice date can change what lands in a period.
  • Treating everything as standard rate → check the VAT treatment for your work.

When it’s worth getting help

Consider a review if:

  • you’ve changed your pricing or service mix
  • you’ve started selling internationally
  • you’re in construction (CIS / reverse charge often complicates VAT)
  • your VAT bills feel unpredictable quarter to quarter

Disclaimer

This checklist is general information, not tax advice. VAT rules change and depend on your scheme and circumstances. If you’re unsure, get tailored advice or check the latest HMRC guidance.

If you’d like Jeremy to review your VAT setup (and make the process painless), you can get in touch via the website contact form.

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