VATRelay

Help using VATRelay

This guide explains how to use VATRelay to submit your VAT returns to HMRC under Making Tax Digital.

Contents

Before you start

You can use VATRelay if your business is registered for VAT and signed up for Making Tax Digital for VAT. Most VAT-registered businesses are signed up automatically.

You will need:

• your 9-digit VAT registration number, shown on your VAT registration certificate and in your HMRC online account;
• the Government Gateway user ID and password you use for your business's HMRC online account;
• your VAT figures in a spreadsheet (Excel) or CSV file, kept as part of your digital records;
• a smartphone or tablet with an authenticator app, such as Google Authenticator or Microsoft Authenticator (both free).

VATRelay is bridging software: it takes the nine figures from your spreadsheet and sends them to HMRC. It checks the figures are in the format HMRC needs and that the boxes add up. It does not check that your VAT is correct. You are responsible for your figures.

VATRelay is independent software. It is not provided by HMRC.

Create your account

1. Go to the VATRelay website and select Create an account.
2. Enter your email address and choose a password of at least 8 characters.
3. Agree to the terms and conditions, then select Create account.
4. Open the email we send you and select the link to confirm your email address. If it has not arrived after a few minutes, check your spam folder.
5. Sign in. The first time, you will set up your authenticator app (see the next section).

Use an email address only you can read.

Sign in

Signing in has two steps, as on HMRC's own services.

1. Enter your email address and password.
2. Enter the 6-digit code from your authenticator app.

The first time you sign in you set up your authenticator app:

1. Install a free authenticator app on your phone, such as Google Authenticator or Microsoft Authenticator.
2. In the app, choose to add an account (often a + button), then Scan a QR code.
3. Point your phone's camera at the QR code on the VATRelay page.
4. The app now shows a 6-digit code for VATRelay that changes every 30 seconds. Enter it on the page.

If you cannot scan the code, select I cannot scan the QR code and type the key shown into the app instead.

Each code works only once and only for a short time. If a code is refused, wait for the next one.

You will be signed out after a period without using VATRelay (60 minutes unless set otherwise), and always after 12 hours. Nothing you have saved is lost.

Add your business

The first time you sign in, VATRelay asks you to add a business. To add another later, select Switch or add business at the top of the page.

1. Enter the business name, as registered for VAT.
2. Enter the 9-digit VAT registration number. You can include spaces or GB, and VATRelay removes them.
3. Select Add.

VATRelay checks the number with HMRC and shows the name and address HMRC holds for it.

• If the name you entered does not match HMRC's record, VATRelay shows both. Check you have the right business, then use HMRC's name or go back and correct it.
• If HMRC has no record of the number, check it against your VAT certificate. You cannot add a VAT number HMRC does not recognise.

Can two people add the same business? Yes. For example, a business owner and their accountant can each add it to their own account. Each account sees only its own copy.

Connect your business to HMRC

Before VATRelay can see your VAT returns or submit one, you must give it permission on HMRC's website. You do this once for each business.

1. On the business's page, select Connect to HMRC.
2. You go to HMRC's website. Sign in with the Government Gateway user ID and password for the business's HMRC online account.
3. HMRC asks whether you want to give VATRelay authority to deal with your VAT. Follow HMRC's instructions to give permission.
4. You come back to VATRelay, which now shows the VAT returns HMRC says are due.

VATRelay never sees your Government Gateway user ID or password. HMRC gives it a secure key instead, which VATRelay keeps encrypted.

HMRC's permission lasts 18 months. After that, or if you disconnect, select Connect to HMRC again.

If HMRC says you are not authorised, sign in with the Government Gateway account that manages this business's VAT. An accountant needs to use their agent services account and be authorised by the business.

Prepare your spreadsheet

The law says your VAT figures must reach HMRC through a digital link, so you cannot type them into VATRelay. Instead, VATRelay reads them from a file you import.

Excel spreadsheet (.xlsx)

The quickest way to start is to download the VATRelay Excel template (XLSX, 4 KB). It is already set up the way VATRelay reads it, and works out boxes 3 and 5 for you. Enter your figures in the yellow cells. Better still, link those cells to your accounting records with formulas, as HMRC requires a digital link.

By default, VATRelay reads:

• the worksheet named VAT Return (or, if there is none, the first worksheet);
• boxes 1 to 9 from cells B1 to B9.

Cell	Box	What it is
B1	1	VAT due on sales and other outputs
B2	2	VAT due on acquisitions from EU member states (Northern Ireland only)
B3	3	Total VAT due (box 1 + box 2)
B4	4	VAT reclaimed on purchases and other inputs
B5	5	Net VAT to pay to HMRC or reclaim (difference between box 3 and box 4)
B6	6	Total value of sales and other outputs, excluding VAT
B7	7	Total value of purchases and other inputs, excluding VAT
B8	8	Total value of supplies of goods to EU member states, excluding VAT (Northern Ireland only)
B9	9	Total value of acquisitions of goods from EU member states, excluding VAT (Northern Ireland only)

If your figures are in other cells, open the business's page, select Manage this business, then Spreadsheet settings, and enter the worksheet name and the cell for each box. VATRelay remembers this for the business.

Formulas are fine: VATRelay reads the values Excel last calculated. Save the file in Excel before you import it.

CSV file

A CSV file must have a header row box,value and one row for each box from 1 to 9:

box,value
1,2400.00
2,0.00
3,2400.00
4,840.00
5,1560.00
6,12000
7,4200
8,0
9,0

Rules for the figures

• Boxes 1 to 5 are in pounds and pence (up to 2 decimal places).
• Boxes 6 to 9 are in whole pounds. If you include pence, VATRelay removes them and tells you, as HMRC requires.
• Box 3 must equal box 1 plus box 2.
• Box 5 must be the difference between box 3 and box 4.
• Enter 0 for boxes that do not apply to you, such as boxes 2, 8 and 9 for most businesses outside Northern Ireland.

Submit a VAT return

1. Open the business's page. Under VAT returns to submit you see each period that has ended and is due. Select Submit this return for the period you want.
2. Choose your spreadsheet or CSV file and select Import and check, or drag the file onto the page. VATRelay checks it straight away. Nothing is sent to HMRC yet.
3. If the file has a problem, VATRelay lists each one, for example a box that does not add up. Correct the spreadsheet, save it, and import it again.
4. Check your VAT return. VATRelay shows the nine figures it will send. Compare them carefully with your records.
5. Read the declaration. When you submit a VAT return you are making a legal declaration that the information is true and complete.
6. Tick the box to confirm the declaration, then select Submit VAT return.
7. You pay for the return next (see the next section).
8. VATRelay sends the return to HMRC and shows HMRC's answer.

You cannot submit a return for a period that has not ended yet. Periods coming up are listed under Coming up.

Paying for a return

Each VAT return costs £4.99 including VAT. You only pay if HMRC accepts the return.

1. After you confirm the declaration, you go to Stripe's secure payment page. Stripe handles the payment: VATRelay never sees your card details.
2. Enter your card details. Your card is not charged yet. The amount is only reserved ("held").
3. You come back to VATRelay, which submits your return to HMRC straight away.
4. What happens to the payment depends on HMRC's answer:
   • HMRC accepts the return: the £4.99 is taken.
   • HMRC rejects the return: the hold is cancelled and you are not charged. Your bank may take a few days to remove it from your statement.
   • HMRC's answer is not received: the hold stays until the outcome is known (see If something goes wrong).

If you leave the payment page without paying, nothing is submitted and you are not charged. You can try again.

A hold that is never used is cancelled automatically within 5 days.

After you submit

If HMRC accepts the return

VATRelay shows VAT return submitted with HMRC's receipt, including:

• the processing date;
• the form bundle number, which is HMRC's reference for your return;
• the payment indicator, which tells you whether you have VAT to pay or a repayment due;
• the charge reference, if you have VAT to pay.

Select Download PDF to keep a copy. The receipt is also listed under Submitted returns on the business's page.

Submitting the return does not pay your VAT. If you owe VAT, pay HMRC separately by the due date. You can see how to pay on GOV.UK ("Pay your VAT bill").

If HMRC rejects the return

Nothing has been filed. VATRelay explains HMRC's reason and what to do. For example:

• A return for this period has already been filed: HMRC already holds a return for it. If that return was wrong, follow HMRC's guidance on correcting errors on a VAT return.
• HMRC did not accept the figures: correct your spreadsheet and import it again.
• This VAT period has not ended yet: submit once the period has ended.

HMRC's exact message is shown under HMRC response on the same page.

Manage your businesses

• Switch business: select Switch or add business at the top of any page, then Switch to this business.
• See past returns: on the business's page, under Submitted returns. Select View for the details, or Download PDF.
• Change spreadsheet settings: Manage this business, then Spreadsheet settings.
• Disconnect from HMRC: Manage this business, then Disconnect. This deletes the key HMRC gave VATRelay. You can connect again at any time.
• Remove a business: Manage this business, then Remove. Type the VAT number to confirm.
  • If you have submitted returns for it, it is archived: hidden and disconnected, but its records are kept, because HMRC requires VAT records to be kept for 6 years. You can restore it from Archived businesses.
  • If you never submitted a return, it is deleted.

Keep your account secure

• Use a strong password that you do not use anywhere else.
• Keep your phone secure: your authenticator app is the second lock on your account.
• Sign out when you finish, especially on a shared computer. Select Sign out at the top of the page.
• Check your activity: select Account activity at the bottom of any page to see recent sign-ins, changes, returns and payments. If you see something you did not do, change your password straight away and tell us.
• Never share your codes. VATRelay and HMRC will never ask you for your password or an authenticator code by email or phone.

If you have lost your phone, contact us (see Get help). For your security we will check who you are before we reset your authenticator.

If you forget your password, select I have forgotten my password on the sign-in page. We will email you a link to choose a new one.

If something goes wrong

"HMRC's answer was not received" (unknown outcome)

Occasionally the connection to HMRC fails after the return is sent, so VATRelay does not know whether HMRC received it. VATRelay never sends it again automatically, because that could file it twice.

1. Open the return and select Ask HMRC whether it holds a return for the period.
2. If HMRC has it, VATRelay records it as accepted, and the payment is taken.
3. If HMRC does not have it, select HMRC did not receive it on the same page. You can then submit again. The hold on your card is cancelled.

You can also check in your HMRC online account.

"Fraud prevention data could not be collected"

HMRC requires software to send information about your device and connection with every request. If some of it cannot be collected, VATRelay will not submit. Reload the page and try again, making sure JavaScript is turned on in your browser.

"For your security, that page had expired"

This happens when a page was open from before you last signed in, or after using your browser's Back button. Nothing was saved. Carry on from the page shown.

Other problems

Problem	What to do
I am not receiving the confirmation or reset email	Check your spam folder. Wait a few minutes before asking for another email.
The authenticator code is refused	Wait for a new code. Check your phone's time is set automatically.
No VAT returns are shown	Check the business is connected to HMRC. HMRC only lists periods it expects a return for.
The period I want is not listed	It may not have ended yet (see Coming up), or it may already have been filed.
The page does not fit my phone	Turn your phone sideways, or use a computer for large spreadsheets.
My payment failed	Check your card details, or try another card. You have not been charged.

Get help

• Using VATRelay: contact us at support@vatrelay.co.uk. Tell us what you were doing and what the page said. Please do not send your password, authenticator codes or spreadsheets unless we ask.
• Security concerns: see our security process.
• Your VAT, payments or HMRC records: contact HMRC. Search GOV.UK for "VAT: general enquiries".
• Making Tax Digital for VAT: search GOV.UK for "Making Tax Digital for VAT".