CoreyHow to do your VAT return with AI (UK, MTD-ready)
Use AI to keep records categorised all year, total the nine VAT boxes, and prep your quarterly return. AI gets the figures right and MTD-ready; it does not file to HMRC unless linked to compatible software, and a qualified accountant still owns submission.
Your VAT return does not go wrong at the deadline. It goes wrong across the three months before it - the uncategorised expenses, the invoices you meant to log, the VAT you were not sure you could reclaim. By the time the return is due you are reconstructing a quarter under time pressure, which is exactly when mistakes happen.
AI fixes this by doing the work continuously instead of in a panic. It keeps every transaction categorised, keeps a running total of the nine boxes, and hands you a return that is ready to check rather than a blank form to fill. Corey is the worked example throughout - an AI operating system that keeps your books MTD-ready all year.
One hard line first, because this is your tax: Corey preps your VAT figures and keeps you Making Tax Digital ready. It does not file to HMRC unless it is connected to MTD-compatible software, and this is not tax advice. A qualified accountant or HMRC owns the submission and every judgement call. AI does the legwork; a human owns the return.
How do I do a VAT return?
A UK VAT return reports the VAT you charged on sales and the VAT you paid on purchases for a period - normally a quarter. You complete nine boxes, HMRC works out whether you owe them or they owe you, and you submit through Making Tax Digital compatible software. The return and payment are usually due one calendar month and 7 days after the period ends.
The work splits cleanly into two halves:
- The mechanical half - logging transactions, categorising them, capturing the VAT, totalling the boxes, reconciling against the bank. This is where the time goes and where AI earns its keep.
- The judgement half - what is reclaimable, which VAT scheme applies, how to treat an edge case. This stays with you and your accountant.
Can AI do my VAT return?
AI can do all of the mechanical half and prepare the return for you. What it should not do is file blind.
Here is the honest split of what AI does and does not do:
| AI does | A human still owns |
|---|---|
| Categorise sales and expenses all year | Judgement on what VAT is reclaimable |
| Keep a running total of the nine boxes | Which VAT scheme you are on |
| Reconcile figures against your bank | Signing off and submitting the return |
| Flag missing invoices and odd entries | Anything that is genuinely tax advice |
| Warn you as you near the threshold | The final decision on any edge case |
Corey sits on the left column. It preps a return that is reconciled and ready to check. The submission and the judgement stay with you or your accountant - by design, not by limitation.
How to do your VAT return with AI, step by step
1. Keep every transaction categorised all year
A VAT return is only as clean as the records behind it. Have AI log and categorise sales and expenses as they land, capture the VAT on each, and flag anything that looks wrong, so you are never rebuilding a quarter from a shoebox of receipts.
Under Making Tax Digital you must keep digital records, so this is not optional housekeeping. It is the requirement.
2. Track the nine VAT boxes as you go
A UK VAT return is nine boxes, from VAT charged on sales (box 1) to VAT reclaimed on purchases (box 4) and the net figure you owe or reclaim (box 5). Have AI keep a running total of each box from your categorised records, so the return is effectively written before the quarter ends.
3. Watch the registration threshold
If you are not yet VAT registered, have AI track your rolling 12-month taxable turnover against the £90,000 registration threshold and warn you as you approach it, so you register on time instead of discovering you were late.
4. Prep the quarterly return figures
At the end of each VAT period, have AI pull the nine box totals together, reconcile them against your bank, and flag anything unusual - a missing invoice, a miscategorised expense, VAT claimed where it should not be. You get a return that is ready to check, not a blank form.
5. Review before anything is submitted
Read the figures. AI preps and explains each box; you or your accountant confirm the judgement calls - what is reclaimable, which scheme applies, how to treat an edge case. Nothing goes to HMRC on autopilot.
6. Submit through MTD-compatible software
VAT returns must be filed to HMRC through Making Tax Digital compatible software over HMRC’s API. AI hands you clean, reconciled figures to enter or push into that software. It does not file to HMRC itself unless it is connected to an MTD-compatible tool.
What are the nine boxes on a VAT return?
Every UK VAT return is the same nine boxes. Knowing what each one is makes the return far less mysterious, and it is what AI keeps a running total of for you.
| Box | What it is |
|---|---|
| 1 | VAT due on sales and other outputs |
| 2 | VAT due on acquisitions of goods (Northern Ireland from the EU) |
| 3 | Total VAT due (box 1 plus box 2) |
| 4 | VAT reclaimed on purchases and other inputs |
| 5 | Net VAT to pay HMRC or reclaim (box 3 minus box 4) |
| 6 | Total value of sales, excluding VAT |
| 7 | Total value of purchases, excluding VAT |
| 8 | Value of goods dispatched to the EU (Northern Ireland only) |
| 9 | Value of goods acquired from the EU (Northern Ireland only) |
Boxes 3 and 5 are calculated for you when you use software. Boxes 2, 8 and 9 only apply to specific Northern Ireland goods trade, so for most solo businesses they are zero. Always check current HMRC guidance for your own situation, since the treatment of a box can depend on your scheme.
Do I need MTD software to file?
Yes. Under Making Tax Digital for VAT, VAT-registered businesses must keep digital records and submit returns to HMRC through MTD-compatible software that talks to HMRC’s API. You cannot type the figures into the old online form any more.
This is why the honesty line matters. Corey prepares and reconciles the nine box figures and hands them to you clean. The filing step goes through your MTD-compatible software. Unless Corey is connected to that software, it does not push the return to HMRC - it gets you to the point where filing is a quick, confident click.
When is my VAT return due?
For standard quarterly VAT, the return and the payment are usually both due one calendar month and 7 days after the end of the VAT period. A quarter ending 31/03/2026 is therefore generally due by 07/05/2026.
The value of AI here is that the deadline stops being a scramble. Because the boxes are totalled continuously, the return is effectively written by the time the period closes - you are reviewing and filing, not building. Check the exact date in your HMRC VAT account, as some schemes and payment methods differ.
Do I need to register for VAT yet?
If you are not registered, the trigger is turnover, not choice. You must register once your rolling 12-month taxable turnover goes over the £90,000 registration threshold (the figure in force since 01/04/2024), or if you expect to cross it within the next 30 days.
The common mistake is finding out late. Have AI track your rolling 12-month turnover against the threshold and warn you as you approach it, so registration is a planned step rather than a backdated scramble. Corey watches the number so you do not have to.
Start with Corey
VAT stops being a quarterly panic when the work happens all year. Corey keeps your records categorised, tracks the nine boxes, watches the threshold, and hands you a reconciled return that is ready to check - MTD-ready, with you and your accountant owning the submission.
Ready to try it? Start with Corey - the first 28 days are on us, no card. Corey preps your VAT; your accountant files it. This is not tax advice.