How to Submit a VAT Return

Solar Accounts Online supports submitting VAT returns directly to HMRC as required by 'Making Tax Digital' rules

Note: To use this feature you must first sign up to the "Making Tax Digital" pilot - click the 'Sign up for the pilot' link on this HMRC web page and follow the instructions. Note that it can take several days for HMRC to approve your request to sign up for the pilot. Also, if you are still running the old offline version of Solar Accounts you will need to upgrade to the online version to be MTD compliant for VAT returns.

Authorising Solar Accounts

To view and submit HMRC VAT returns you must first authorise Solar Accounts to interact with HM Revenue and Customs to act on your behalf. To do this click menu Window > VAT Returns, then click the 'Connect' button:

Screenshot showing 'Connect' button

The HMRC Authorisation window will be shown - click the link to open your web browser showing the HMRC login page:

Screenshot showing authorisation link

Log into the HMRC website and click the 'Grant Authority' link:

Screenshot of HMRC grant authority page

Then click the 'Copy' button to copy the authorisation code to your computer's system clipboard:

Screenshot of HMRC copy authority code page

Close your browser and return to Solar Accounts, then click the 'Paste' button in the Solar Accounts window, then click OK:

Screenshot showing paste button to paste authorisation code
Submitting a VAT Return

Solar Accounts will show details of your VAT returns for the past year. To submit a VAT return to HMRC, double-click on a row where the Status is 'Open':

Screenshot of VAT returns list in Solar Accounts

Check the VAT return period is correct and click 'Next'. Solar Accounts will calculate your VAT return figures for that period and display them on screen. If necessary edit these figures by clicking 'New Adjustment', then click the 'Submit' button:

Screenshot of VAT return figures

Your VAT return will be submitted to HMRC. If successful, Solar Accounts will show the details of the submission including timestamp, unique ID and the reference they will use when debiting your bank account:

Screenshot of VAT return result when successful

If there is a non-zero figure in Box 5 of the VAT return, you will be prompted to record the payment to (or from) HM Revenue and Customs. Check the box and click 'OK' to record this payment:

Screenshot of VAT payment to HMRC