VAT return
How to read the VAT return
Nothing is sent to HMRC. Sending the finalised figures to HMRC is a separate step on the Filing card, once your company is connected in Settings → HMRC.
The boxes are kept exactly as filed. The capital-asset list and any differences noted come from your current records.
Scheme, basis and rates come from VAT scheme and Flat rate in Settings.
More helpFiled 1 July to 30 September 2026, under Flat Rate Scheme · Cash basis. Filed 2 November 2026 by seed-owner@demo.settledge.co.uk. Filed figures are locked.
Filing
Matches your current records.
The nine boxes
-
Box 1: VAT due on your sales
Box 1 working
15.5% of each payment, rounded, then added up
Worked out from 4 documents you issued, each at the flat rate in force on its tax point.
£6,140.33 -
Box 2: VAT due on acquisitions from EU member states
Box 2 working
Always £0.00 here.
£0.00 -
Box 3: Total VAT due
Box 3 working
Box 1 + Box 2
£6,140.33 -
Box 4: VAT you can reclaim on purchases
Box 4 working
Under the Flat Rate Scheme, only capital assets of £2,000 or more, including VAT. None this quarter.
£0.00 -
Box 5: Net VAT to pay to HMRC or reclaim
Box 5 working
Box 3 − Box 4
£6,140.33 -
Box 6: Total value of your sales
Box 6 working
Including VAT, as the Flat Rate Scheme requires.
The same 4 documents, totalled including VAT.
£39,615.00 -
Box 7: Value of capital assets and reverse-charged purchases
Box 7 working
Excluding VAT, no purchases.
£0.00 -
Box 8: Value of goods sent to the EU from Northern Ireland
Box 8 working
Northern Ireland to EU goods only. None here.
£0.00 -
Box 9: Value of goods received from the EU into Northern Ireland
Box 9 working
EU to Northern Ireland goods only. None here.
£0.00
Limited cost test
How the limited cost test works
HMRC treats a Flat Rate business as limited cost when what it spends on goods in a return period is less than 2% of its VAT-inclusive turnover, or less than £1,000 a year (£250 for a quarter), whichever is greater. Limited cost businesses use a higher Flat Rate percentage.
Goods are things you buy to sell on or use up. Services, capital assets, vehicles, fuel, and food and drink for staff do not count.
This page shows the result. It does not change your rate.
- Goods spend (VAT included)
- £0.00
- Turnover (Box 6)
- £39,615.00
- Threshold
- £792.30
- The greater of 2% of turnover (£792.30) and £250.00 for this quarter.
- Flat Rate percentage recorded
- 15.5% from 1 April 2026
- Limited cost?
- Yes
Your goods spend is under the threshold, so the limited cost rate applies to this return. Check the percentage above is that rate.
Worked out from your records today. It is not part of the filed figures.
16 expense categories are not marked as goods, so their spend is not counted.
How invoices are counted
How invoices are counted
Money that arrives with no invoice behind it is counted on the date it reached your bank instead. Worth confirming with your accountant before you file.
An invoice counts in the quarter it was paid in full, and is worked out at the flat rate in force on the earlier of the first payment and the invoice date.
HMRC
Not connected to HMRC.
Ask an owner to submit this return to HMRC.