Making Tax Digital (MTD) for VAT is a UK government initiative requiring VAT-registered businesses to keep digital records and submit VAT returns using compatible software. Vatter is MTD-compatible software that connects directly to HMRC via their secure API, allowing you to submit returns without logging into the HMRC portal.

Navigate to your entity's detail page and click the 'Authorise with HMRC' button. You will be redirected to the HMRC Government Gateway login page where you grant Vatter permission to act on your behalf. Once you approve, HMRC sends an authorisation code back to Vatter and your entity becomes connected. Authorisation tokens expire after 18 months and can be renewed at any time.

An entity represents a VAT-registered business or individual whose VAT obligations you manage in Vatter. Each entity has its own HMRC authorisation, VAT registration number, and return history. A single Vatter account can hold multiple entities, which is especially useful for tax agents managing several clients.

Go to the Entities page and click 'Add Entity'. Fill in the required details including the legal name, VAT registration number, and whether the entity is an individual or organisation. After saving, you can authorise the entity with HMRC to begin retrieving obligations and submitting returns.

A VAT obligation is a period for which HMRC expects a VAT return from you. Obligations have a start date, end date, and a due date by which the return must be filed. They are classified as open (not yet filed), fulfilled (filed), or overdue (past the due date and not yet filed). Vatter retrieves your obligations automatically from HMRC once your entity is authorised.

Open the VAT Returns page for your entity, select an open obligation, and click 'Submit Return'. Upload your spreadsheet to populate the nine VAT box figures, review the summary, and confirm submission. Vatter sends the return to HMRC in real time and you receive an immediate confirmation reference number.

Yes. Each entity must have an active licence assigned to it before VAT returns can be submitted. A licence lasts for one year from the date it is assigned to the entity, and during that period the entity can make as many submissions as HMRC allows — there is no per-submission charge or limit. Once the licence expires, submissions are blocked until a new licence is purchased and assigned. You can still log in and view obligations, liabilities, and payment history for unlicensed entities at any time.

A licence is assigned to a specific entity and grants that entity the ability to submit VAT returns for one year from the date of assignment. During the licence period you can submit as many VAT returns as HMRC allows — licences are not consumed per submission. When the licence expires the entity can no longer submit returns and a new licence must be purchased and assigned to restore submission access. You can log in and view your entities without an active licence, but the submit option will be unavailable until a valid licence is in place.

Click 'My Licences' in the navigation menu and then 'Buy Licences'. Select the quantity you want and proceed through the Stripe-powered checkout. Payment is processed securely by Stripe; Vatter never stores your card details. Once payment is confirmed, licences are added to your account and can be assigned to your entities from the My Licences page. Each licence you assign to an entity is valid for one year from the date of assignment.

HMRC authorisation tokens last 18 months. If yours has expired, open the entity's page and click 'Re-authorise with HMRC'. You will be taken through the same HMRC Government Gateway login flow as the initial authorisation. Once complete, Vatter refreshes the connection and you can resume submitting returns immediately.

Tax agents use the Agent Authorisation flow found under the 'Authorization' link in the navigation menu. You first authorise Vatter to act as your agent firm with HMRC, and then each client entity is individually authorised. You can then switch between client entities on the Entities page, viewing and submitting returns on each client's behalf.

Yes. VAT figures must be imported by uploading your spreadsheet file directly into Vatter. Vatter reads the nine VAT box values from your spreadsheet, satisfying the MTD requirement to maintain a digital link between your accounting records and the submission.

HMRC's MTD rules require a continuous digital link from your source records through to the nine VAT return figures. The recommended approach is to keep your transaction data (sales, purchases, adjustments) on one or more working sheets, then create a dedicated summary sheet — often called a Feed Sheet or Return Sheet — that contains exactly the nine VAT boxes. The nine box values on that feed sheet should be driven entirely by formulas referencing your working data, not by manually typed numbers. This formula link is what satisfies HMRC's digital link requirement. When you are ready to submit, open the spreadsheet in Vatter, select the feed sheet, and the nine box values will be available to copy into the submission grid. Keep your spreadsheet well organised with clearly labelled sheets and avoid breaking formula links by pasting values over them.

You should keep a separate spreadsheet file for each VAT return period and retain these records for at least six years, as HMRC may request them during a compliance check. Name each file clearly so you can identify the entity, period, and submission date at a glance — for example, 'VAT Return Q1 2025 Jan-Mar.xlsx'. Store files in a secure location such as a cloud drive with version history (OneDrive, Google Drive, or SharePoint) so you have a recoverable backup. Vatter accepts spreadsheet uploads up to 100 MB; if your workbook grows beyond this through accumulated historical data, consider archiving older sheets into a separate file and keeping only the current period's data in the working file you upload.

The nine VAT boxes are: Box 1 – VAT due on sales; Box 2 – VAT due on acquisitions from EU; Box 3 – Total VAT due (Box 1 + Box 2); Box 4 – VAT reclaimed on purchases; Box 5 – Net VAT to pay or reclaim (Box 3 minus Box 4); Box 6 – Total value of sales excluding VAT; Box 7 – Total value of purchases excluding VAT; Box 8 – Total value of supplies to EU; Box 9 – Total value of acquisitions from EU.

HMRC processes the submission in real time and returns a confirmation with a unique form bundle reference number. Vatter displays this reference on screen and the obligation moves to 'Fulfilled' status. HMRC will separately send a payment reminder or refund notification through your Government Gateway account if a balance is due.

Yes. The VAT Returns page for each entity has tabs for Obligations, Liabilities, and Payments. The Liabilities tab shows amounts currently owed to HMRC, and the Payments tab shows a history of payments HMRC has recorded against your VAT account. This data is retrieved live from HMRC each time you visit the page.

HMRC's MTD system does not currently allow amendment of a submitted return through the API. If you submitted incorrect figures you should contact HMRC directly to request an amendment or make an adjustment in your next VAT return period. Vatter recommends carefully reviewing all nine box figures before confirming submission.

Vatter uses OAuth 2.0 tokens issued by HMRC to access your data; your Government Gateway password is never stored by Vatter. All communication between Vatter and HMRC uses HTTPS. Your data is stored in a UK-hosted SQL Server database protected by ASP.NET Core Identity authentication. You can revoke Vatter's access at any time through your HMRC online account.

Vatter is designed specifically for VAT-registered businesses that need to comply with Making Tax Digital for VAT. If you are not VAT-registered you will not have a VAT Registration Number to enter and HMRC will have no obligations for your account. You can still create an account and explore the application, but the core MTD functionality requires a valid VAT registration.

When logged in, open the user menu at the bottom of the navigation panel and select 'Password' to change your password, or 'Email' to update your email address. If you have forgotten your password and cannot log in, click 'Forgot password?' on the login page and follow the emailed link to reset it.

Visit the Support page (link in the top navigation) to send a support message directly to the Vatter team. You can also email support@vatter.co.uk. We aim to respond to all enquiries within one business day. For urgent issues relating to an HMRC submission deadline please include the entity name and VAT registration number in your message.

If HMRC rejects your submission, Vatter displays the error message returned by HMRC. Common reasons include figures that fail HMRC's validation rules — for example, Box 3 not equalling Box 1 plus Box 2, or values outside the permitted range. Correct the figures and resubmit. A rejected attempt does not affect your licence — as long as your entity has an active licence you can resubmit as many times as needed.

There are a few possible reasons: your HMRC authorisation may have expired (re-authorise and refresh the page); HMRC may not yet have generated obligations for the next period (they typically appear shortly after the previous return is accepted); or the entity's VAT registration may be suspended or deregistered. If you believe obligations are missing, log into your HMRC Business Tax Account to confirm and contact HMRC if necessary.

HMRC assigns a return frequency to each VAT-registered business. Most businesses file quarterly (every 3 months). Monthly filing is available if you regularly receive VAT repayments, as it speeds up the refund cycle. The Annual Accounting Scheme allows a single annual return with monthly or quarterly advance payments made throughout the year. Vatter retrieves whichever obligation schedule HMRC has set for your entity and displays it automatically.

Yes. The Flat Rate Scheme (FRS) changes how you calculate the amount due, but the nine-box VAT return format submitted to HMRC remains the same. Vatter does not automatically calculate your FRS liability — you calculate the figures in your accounting records and upload your spreadsheet to Vatter, which reads the nine box values from it. The digital link between your records and the submission is maintained through the spreadsheet upload, satisfying the MTD digital link requirement.

HMRC requires digital records of: your business name, address, and VAT registration number; the VAT accounting scheme used; details of supplies made and received (date, net value, and VAT rate); any adjustments to the return; and reverse charge transactions where applicable. These records must be kept in a digital format with a continuous digital link through to your VAT return submission. Vatter provides the digital link at the submission stage; you remain responsible for maintaining the underlying records in your accounting software.

From January 2023, HMRC operates a penalty points system for late submissions. Each missed deadline adds a point; quarterly filers receive a £200 penalty when they reach 4 points, plus £200 for every further late return. Separate late payment penalties apply: 2% of the outstanding VAT if unpaid after 15 days, an additional 2% at 30 days, and a further 4% per annum thereafter. HMRC interest also accrues on overdue balances. Submitting and paying on time through Vatter avoids all of these charges.

Each Vatter login is individual so that team members would have to share that login. All users with access to an entity can view its obligations, liabilities, and payment history. Submission rights depend on the role assigned. Contact support if you need guidance setting up multi-user access for your organisation.

Yes. Vatter integrates directly with HMRC's Making Tax Digital API — the official, HMRC-approved channel for MTD submissions. All data exchanged with HMRC, including obligations, liabilities, payments, and return submissions, passes through this API using OAuth 2.0 tokens issued by HMRC. This means your submissions are recorded in exactly the same way as any other MTD-compatible software.

Yes. You can delete an entity from the Entities page using the delete option on the entity card or table row. This removes the entity and its associated HMRC authorisation from Vatter. It does not affect any returns already submitted to HMRC — those remain in your HMRC records permanently. Before deleting, ensure you have saved any information you need for your own compliance or record-keeping purposes.

A VAT return template stores the mapping between your spreadsheet cells and the nine VAT boxes. Instead of manually selecting which cell in your uploaded Excel file corresponds to Box 1, Box 2, and so on each time you submit, you save that mapping as a named template. On your next submission you simply choose the template from the dropdown, click Apply, and all nine boxes are populated from your spreadsheet automatically. Templates are stored per entity but can be reused across any of your entities.

During the VAT return submission flow, after uploading your spreadsheet and selecting the correct cells for each VAT box, you will see a 'Save as Template' option. Give the template a meaningful name — for example 'Main Workbook Q1 Feed Sheet' — and save it. The template is then associated with the current entity and will appear in the template dropdown on every future submission for that entity, as well as being available for your other entities.

Yes. When you open the submission dialog for any entity, the template dropdown shows two groups: templates saved for the current entity, and — separated by a divider labelled 'Other entities' — templates saved for your other entities, shown as 'Entity Name – Template Name'. This is particularly useful when multiple entities use the same spreadsheet layout, since you only need to create the mapping once and can apply it across all entities without any additional setup.

After uploading your Excel file in the submission wizard, navigate to the 'Vat Due Sales' step. If any templates exist for your entities, the template selector will appear above the nine-box grid. Select the template you want from the dropdown — your own entity's templates are listed first, followed by templates from your other entities under 'Other entities' — then click Apply. Vatter reads the mapped cells from your uploaded spreadsheet and fills in all nine VAT boxes in one step. You can still edit individual values after applying a template if any figures need a manual adjustment.

If your Box 5 figure represents a net amount owed to you (Box 4 greater than Box 3), Vatter submits this as a repayment return to HMRC in exactly the same way as a payment return. HMRC processes the repayment separately and will transfer the funds to your registered bank account. You can monitor progress in the Payments tab on the VAT Returns page, which shows payments and repayments HMRC has recorded against your VAT account.