File your VAT returns with Xero — MTD compliant

Step-by-step guide for UK businesses

How to Submit Your VAT Return Online With Xero

Filing your VAT return doesn’t have to be a quarterly headache. Xero UK is HMRC-approved software for Making Tax Digital, letting you submit VAT returns online without bridging tools or spreadsheets. In this guide, we walk through the filing process step by step so your business stays compliant.

How Do I Do a VAT Return on Xero?

Start by checking that every transaction has the correct tax rate — review your invoice dates, purchases, and account feeds. Then navigate to Accounting > Reports > VAT Return. Xero calculates your VAT liability for the period automatically.

When you’re happy with the figures, click File VAT to send it to HMRC through the MTD gateway. After filing, record the payment so your accounting records stay balanced.

How to Do a VAT Return Step by Step

  1. Code your transactions — ensure every sale, purchase, and expense has the right VAT rate applied. Common rates are 20% standard, 5% reduced, and 0% zero-rated.
  2. Run the VAT return report — the platform displays all nine boxes matching the official form and calculates totals automatically.
  3. Review the figures — compare the return against your records and fix any miscoded items.
  4. Submit — send your VAT return with a single click. Data flows securely through the MTD digital gateway.
  5. Record the payment — log the payment or claim your refund to keep your books accurate.

Is Xero Approved by HMRC?

Yes. Xero is on the official approved list for MTD. You can maintain digital records, submit returns online, and meet every regulatory requirement without a separate bridging tool. Small businesses across the UK rely on it to handle VAT filing with confidence.

Why Small Businesses Choose Xero for VAT Filing

Using Xero for VAT filing gives your business real-time visibility. You can claim input VAT on your VAT bill, manage cash flow, reconcile your bank account directly, and generate reports from one dashboard. The accounting platform keeps track of VAT added onto prices and handles the calculations simply, so you can stay compliant and focus on growth rather than paperwork throughout each VAT period.

Let JacRox Handle Your VAT Returns

If you’d rather leave VAT filing to the experts, JacRox’s VAT return service handles the whole process — from transaction coding to submission. Read our bookkeeping guide for more tips, or get in touch for a free review of your setup.