As a UK business owner, you already deal with sales, customers, payroll, suppliers, and day-to-day operations. But when it comes to VAT return filing, especially VAT online VAT returns under Making Tax Digital (MTD), things can quickly become confusing and time-consuming.

That’s where accountants play a crucial role.

In today’s digital tax environment, accountants do much more than just “submit VAT returns.” They help businesses stay compliant, avoid mistakes, save money, and reduce stress. For many businesses—especially small and medium-sized ones—having a professional accountant manage VAT returns online is not just helpful…it’s essential.

In this blog, we’ll explore:
What online VAT return filing actually involves
Why VAT returns are more complex than they appear
The key role accountants play in the process
How accountants prevent penalties and protect your business
Why outsourcing to a specialist like The Infinity Group can make a huge difference

Let’s dive in
What Is Online VAT Return Filing?

In the UK, VAT return filing must now be completed online through HMRC’s Making Tax Digital (MTD) system. This means:

No more paper forms
No manual entries into the HMRC portal (copy and paste not allowed)
Must use MTD-compliant software
Must keep digital VAT records

Online VAT return filing involves:

  • Gathering VAT data (sales and purchases)
  • Calculating input vs output VAT
  • Ensuring accuracy of VAT rates
  • Applying reverse charge (if applicable)
  • Using correct VAT schemes (flat rate, cash accounting, etc.)
  • Submitting through approved software
  • Meeting strict deadlines (usually quarterly)
  • Keeping digital records for 6 years

Sounds simple? Not really.

That’s where experienced accountants are essential.

Why VAT Returns Can Be Difficult for Businesses

VAT is one of the most complicated taxes in the UK. Businesses often struggle because:

Different VAT rates (0%, 5%, 20%)
Special rules for different industries (e.g. construction, hospitality, eCommerce)
Reverse charge VAT (especially in construction and CIS)
Changing HMRC regulations
MTD software requirements
Lack of accounting knowledge
Time pressure and deadlines
Risk of inspections or audits
Mistakes lead to penalties

Even a small mistake in VAT returns can trigger an HMRC investigation—which is stressful and costly.

That’s why businesses rely on accountants to do it right the first time.

The Key Roles Accountants Play in Online VAT Return Filing

Accountants don’t just submit your VAT return—they manage the entire process from start to finish to ensure full compliance and accuracy.

Here’s how they help:

1. Determining VAT Registration Status

Not all businesses need to register for VAT. Accountants help you know:
When to register (threshold: £90,000 turnover)
When voluntary registration is beneficial
When to deregister

They ensure you register at the right time to avoid HMRC issues.

2. Choosing the Right VAT Scheme

There are multiple VAT schemes in the UK:

  • Standard VAT Accounting
  • Flat Rate Scheme
  • Cash Accounting Scheme
  • Annual Accounting Scheme
  • Margin Scheme (for second-hand goods)
  • Retail Schemes

Accountants analyse your business and recommend the most tax-efficient scheme, helping you save money and simplify VAT.

3. Correct VAT Rate Application

Accountants ensure the correct rate is applied:
Standard-rated (20%)
Reduced-rated (5%)
Zero-rated (0%)
Exempt
Outside the scope

They prevent costly mistakes such as overcharging customers or underpaying HMRC.

4. Handling Reverse Charge VAT

In construction and CIS, reverse charge VAT rules apply. This confuses many businesses. Accountants:

Apply reverse charge correctly
Ensure invoices include legal wording
Adjust VAT returns properly

This keeps you safe from HMRC errors.
 5. Digital Record-Keeping (MTD Compliance)

Under MTD, VAT records must be stored digitally and linked directly to VAT submissions. Accountants:
Set up compliant accounting software
Maintain accurate digital records
Use digital links (no manual re-entry)
Ensure 6-year record retention

This protects you during inspections
6. Reconciling Input and Output VAT

Accountants carefully reconcile:
VAT you charged (output VAT)
VAT you paid (input VAT)

They also:
Identify VAT you can reclaim
Spot non-reclaimable VAT (e.g. on entertainment)
Correct any discrepancies

This ensures your VAT return is accurate.

7. Submitting VAT Returns on Time

Deadlines matter. Late filing or payment leads to penalties. Accountants:
Track deadlines
Prepare VAT early
Submit via HMRC-approved software
Ensure payment is made on time

They remove deadline stress completely.

8. Avoiding HMRC Penalties

Accountants know HMRC rules inside out. They help you avoid penalties for:
Late submission
Late payment
Inaccurate returns
Ignoring MTD rules
Poor record-keeping

They also help you respond if HMRC queries or audits your return.

9. VAT Planning and Cash Flow Management

VAT can affect your cash flow. Accountants help by:
Planning for VAT payments
Using schemes to delay VAT
Improving cash flow
Identifying VAT refunds faster

They ensure VAT doesn’t create financial stress.

10. Representing You in Case of HMRC Inspection

If HMRC investigates, accountants can:
Communicate with HMRC on your behalf
Provide documentation
Correct previous errors
Negotiate outcomes if needed

This gives you peace of mind, knowing professionals are handling it.

Why Outsourcing VAT to Specialists Is Better Than DIY

Doing VAT return filing yourself may seem cheaper, but in reality it can cost more due to:

Time wasted
Mistakes and penalties
Missed VAT reclaims
Wrong VAT schemes
Compliance risks
HMRC stress

A professional accountant saves:
Tim
Money
Stress
Risk

And gives you confidence that everything is correct.

The Infinity Group – Your Trusted VAT Return Partner

If you're looking for reliable, expert support, The Infinity Group is a trusted UK-based provider specialising in accounting, payroll, CIS, and VAT return services.

Why businesses choose The Infinity Group:

Experts in online VAT return filing
MTD-compliant software and systems
Experience with CIS, construction, and contractors
Deep understanding of HMRC rules
Accurate calculations and documentation
Deadline reminders and on-time submissions
Dedicated support and advice
Affordable and tailored packages

Whether you’re a small business, contractor, or growing company, The Infinity Group ensures your VAT is handled professionally and compliantly.

Final Thoughts

VAT return filing is more than just pressing “submit.” It requires understanding complex tax rules, applying the right schemes, keeping accurate digital records, and staying fully compliant with HMRC and MTD.

Accountants play a vital role in making sure this process is:
Correct
Timely
Compliant
Stress-free

By partnering with experienced accountants—especially specialists like The Infinity Group—you protect your business from penalties, improve cash flow, and free up your time to focus on growth.