VAT & Making Tax Digital
Keep digital VAT records and submit under Making Tax Digital for VAT — the 9-box return, submission to HMRC, and the VAT schemes.
Coming soon
This module isn't live yet. Payroll, Bookkeeping and Point of Sale are available now — this guide is here so you can see what's coming.
On this page
What Making Tax Digital for VAT means
Making Tax Digital (MTD) for VAT requires VAT-registered businesses to keep digital records and submit VAT returns using compatible software that connects to HMRC — you can no longer type figures into the HMRC website by hand. Valix keeps the digital records and submits the return for you over HMRC’s MTD API.
Who it applies to
MTD for VAT applies to all VAT-registered businesses. HMRC now signs up newly registered businesses automatically.
Connecting to HMRC
You authorise Valix to interact with HMRC on your behalf using OAuth 2.0. You sign in on HMRC’s own site and grant access — Valix never sees or stores your Government Gateway password. The connection can be refreshed and revoked at any time.
The 9-box VAT return
A UK VAT return is nine boxes. Valix calculates them from your transactions for the period.
| Box | What it is |
|---|---|
| 1 | VAT due on sales and other outputs |
| 2 | VAT due on acquisitions (postponed/EU where relevant) |
| 3 | Total VAT due (box 1 + box 2) |
| 4 | VAT reclaimed on purchases and other inputs |
| 5 | Net VAT to pay to HMRC or reclaim (box 3 − box 4) |
| 6 | Total value of sales excluding VAT |
| 7 | Total value of purchases excluding VAT |
| 8 | Value of supplies of goods to the EU (where applicable) |
| 9 | Value of acquisitions of goods from the EU (where applicable) |
VAT schemes
Your scheme affects how and when VAT is calculated. Set the right one so Valix computes the boxes correctly.
| Scheme | How VAT is accounted for |
|---|---|
| Standard (accrual) | VAT on the invoice date, whether or not it has been paid. |
| Cash accounting | VAT when money actually changes hands — helps cash flow. |
| Flat rate | A fixed percentage of gross turnover, with limited input VAT recovery. |
Reviewing and submitting
- 1Reconcile your bank and make sure the period’s transactions are complete.
- 2Open the VAT return for the period — Valix populates the nine boxes.
- 3Review each box and drill into the transactions behind it.
- 4Confirm the legal declaration that the return is correct and complete.
- 5Submit to HMRC. Valix stores HMRC’s receipt and reference against the return.
A submitted return is final
Once you submit, the figures are filed with HMRC. Review carefully — corrections have to be handled through HMRC’s error-correction rules.
Frequently asked questions
Does Valix store my Government Gateway password?
No. You authorise Valix through HMRC using OAuth 2.0, and only an access token is held — encrypted at rest. You can revoke it at any time.
Can I see what’s behind each box?
Yes — every box drills down to the transactions that make it up, so you can check before you file.
What if I make a mistake?
Small errors are usually adjusted on your next return within HMRC’s thresholds; larger ones are reported separately. Check HMRC’s error-correction guidance or ask your accountant.
Related guides
Still need a hand?
Our UK support team can help with your account.