UK VAT Return — VAT100 (MTD)

Confirm the client is VAT-registered with HMRC, establish their 9-digit GB VAT number, identify which accounting scheme they use (standard, Flat Rate, cash accounting, or annual accounting), and determine the VAT period (quarterly or monthly). Also establish whether the business is in Great Britain only or has Northern Ireland operations, which affects the NI Protocol goods rules.

Process the client's bank statement and invoice register for the period. Apply the supplier pattern library to classify each line as standard-rated 20%, reduced-rate 5%, zero-rated, exempt, outside scope, or reverse charge. Flag blocked categories (UK client entertainment, motor cars with private use, private fuel without fuel scale charge). Identify all overseas supplier services (EU and non-EU) requiring the UK reverse charge.

For clients on the Flat Rate Scheme, run the Limited Cost Trader (LCT) test before computing the FRS liability. If relevant goods spend is less than 2% of gross VAT-inclusive turnover or less than GBP 1,000 annualised, the client is an LCT and the rate is 16.5% regardless of sector. Compare FRS liability against the standard-accounting liability and flag if leaving FRS would produce a lower net payment.

Populate all nine boxes of the VAT100 using the classified transaction register. Reconcile Box 5 (net VAT payable or reclaimable) against the prior period return and the client's accounting records. Check for bad debt relief eligibility (debts over 6 months old and written off). Verify that Box 6 total outputs and Box 7 total inputs are arithmetically consistent with the classified register.

Submit the completed VAT100 via MTD-compatible software (Xero, QuickBooks, FreeAgent, Sage, Kashflow, or bridging software with digital links). Confirm HMRC acknowledgement reference. Advise on the payment deadline — 1 calendar month and 7 days after the end of the VAT period for direct debit or online payment. Remind the client that HMRC's basic online portal is not MTD-compliant for VAT.