Your first VAT return: the quarter, the 7th and the payment

Crossing the VAT threshold is a good sign for a business and an admin job for its owner. Your first return is the one most likely to go wrong, so here is what it involves.

When it is due

VAT returns cover a quarter. The return and the payment are both due one month and seven days after the quarter ends. For a quarter to 30 September, that is 7 November.

Your first quarter may be longer or shorter than three months, depending on the date you registered. The date is on your registration certificate.

What goes on it

The total VAT you charged on sales, the VAT you paid on business costs, and the difference. If you charged more than you paid, you pay HMRC. If you paid more, HMRC pays you.

The three mistakes we see most

• Claiming VAT on costs from suppliers who are not registered. No VAT number on the invoice, no claim.
• Forgetting VAT on costs before registration. You can usually reclaim VAT on goods you still hold, bought up to four years before, and services from the last six months.
• Choosing the flat rate scheme without checking. It suits some service businesses and costs others money. Run the numbers first.

If you want someone else to handle it, our VAT service is £25 a month and covers all four returns. See what is included.