VAT returns are usually quarterly, but the work behind a clean return happens every month. Leaving it until the quarter end means reconstructing three months of transactions under deadline pressure.
A simple monthly routine
- Record every sales invoice — check each one shows the correct VAT rate and your VAT number.
- Capture purchase invoices — only claim VAT where you hold a valid VAT invoice.
- Reconcile the bank — every bank line should match a recorded transaction.
- Record credit notes — these reduce VAT and are easily missed.
- Review VAT coding — look for zero-rated, exempt and outside-the-scope items coded incorrectly.
- Flag imports, exports and unusual items — these often need specific treatment.
- Keep digital records — Making Tax Digital requires records to be kept digitally and returns submitted through compatible software.
At the quarter end
If the monthly routine has been followed, the quarter end becomes a review rather than a rebuild: compare the VAT account to the draft return, investigate anything unusual and keep the working papers with the submission.
You can download our VAT records guide as a monthly checklist.
