A Complete Guide to Filing Quarterly VAT Returns in London (2025 Update)
For businesses operating in London, understanding and managing VAT obligations is essential. The Quarterly VAT Return is a cornerstone of compliance for VAT-registered companies, and recent updates from HMRC in 2025 have made accuracy and timeliness even more important. Whether you are a sole trader or managing a limited company, this guide provides everything you need to know to ensure smooth filing and avoid costly penalties. Understanding the Purpose of a Quarterly VAT Return A Quarterly VAT Return is a formal report submitted to HMRC every three months that details the amount of VAT a business has charged on sales and paid on purchases. The primary goal is to calculate whether you owe HMRC money or are entitled to reclaim a refund. Businesses collect VAT on behalf of the government, but they can also reclaim VAT paid on eligible expenses. This balancing act requires precise bookkeeping and timely submission. With Making Tax Digital (MTD) regulations now fully integrated,...