Calculate and submit your VAT Return

Summary

How to calculate and submit your Making Tax Digital (MTD) VAT Return in Sage 50 Accounts.

Description

If you've registered for MTD, and switched on MTD VAT submissions in your program, you can submit your VAT Return.

TIP:

Need to submit a group VAT Return? With the Sage MTD Submissions Module, you can combine values from different companies to submit under one return.

 

Resolution

If you're using the MTD Submissions Module, only follow the first two sections below to calculate your VAT Return for each company in Sage.

Summary of steps 

  1. Calculate and reconcile your VAT Return
  2. Post the VAT transfer journal
  3. Submit your VAT return to HRMC

Calculate and reconcile your VAT Return

  1. If this is your first VAT period under MTD, check your VAT settings.
  2. On the navigation pane select VAT, then VAT Return.
  3. To back up your data, press Back up and follow the on-screen prompts.
  4. Under the Date range, choose your VAT Return period then choose Calculate VAT Return.

    If there are any transactions before the date range not on a VAT return already, the Earlier unreconciled transactions window appears. To include these transactions, press Include. If you don't want to include them, choose Ignore.

  5. Check your VAT figures and post any required adjustments.
  6. Print your VAT Return reports.
  7. Press Reconcile VAT Return then press Yes.

Post the VAT transfer journal

  1. Complete the VAT transfer area as follows:
    Date Enter the date for the VAT Transfer.
    Sales Tax Amount This is the amount from Box 1 on the VAT Return. You can amend this if required.
    Purchase Tax Amount This is the amount from Box 4 minus the amount from Box 2 on the VAT Return. You can amend this if required.
  2. Press Post Journal.

Submit your VAT Return to HMRC

NOTE:

If you'll submit these figures as part of a group VAT Return using the MTD Submissions Module, don't follow the steps below. Instead, press Close.

 

  1. Be in the Complete VAT Return window. If you've closed this window previously after reconciling the VAT return, to get back to this window double-click on the VAT Return.
  2. Press Submit online. 

The VAT return screen in Sage 50 Accounts, highlighting the Submit Online button.

  1. Press Next.

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  2. Check your company name and VAT Registration Number are correct, then select Next.

    The VAT return company details screen in Sage 50 Accounts.

  3. In the Gov.uk window, scroll to the bottom and press Continue.


    The authority to interact screen from GOV.UK

  4. Enter your Government Gateway ID and password. Press Sign-in.

    The GOV.UK sign in screen

  5. Select Continue then select a method to receive your access code.
  6. Choose Continue and follow the on-screen prompts.
  7. In Access Code, enter the code you received, then press Continue.
  8. Select Continue then press Grant Authority.

    The GOV.UK Authority to interact screen, highlighting the Grant authority button.

  9. Under Submit your period, in the dropdown choose the obligation period you want to submit for.

    The VAT Return submission screen in Sage 50 Account, shows the period to submit.



    TIP:

    More than one obligation period can show here, take care to choose the correct one. No obligation period showing?

     
  10. Select the confirmation checkbox then press Submit to HMRC.

    The VAT submission screen shows the HMRC declaration checkbox.

  11. When the successful submission window appears, press Close.

    Getting a submission error? 

    the VAT Return submission confirmation window.

  12. If required, to view a submission confirmation report, select Submission confirmation.
  13. If required, record your VAT bank payment however you have a payment set up with HMRC, then press Close.

    NOTE:

    Sage doesn't automatically pay to or reclaim from HMRC. If you don't have a Direct Debit set up with HMRC, you'll need to pay them via the HMRC website.

     

Seeing a submission error?

We have a list of the most common submission errors and how to resolve them.

You can also search for the error message in our Help Centre to find out how to resolve it.


 

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Solution Properties

Solution ID
200427112501646
Last Modified Date
Mon Sep 28 11:22:55 UTC 2026
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Product Details
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