How to Submit VAT Returns via MTD in 2025 (Using Xero or FreeAgent)

Prerequisites Before You Start

• You must be registered for MTD VAT with HMRC
• Your accounting period must be due
• You need an MTD-compliant software like Xero or FreeAgent connected to your HMRC account

Step-by-Step Using Xero

1. Login to Xero and open your VAT Return section
2. Click “Prepare VAT Return”
3. Xero automatically pulls data from your digital records
4. Review the figures, adjust if necessary
5. Click “File with HMRC”
6. Enter your HMRC login credentials (once)
7. Submit and save your confirmation receipt

Tip: Xero also lets you schedule reminders so you never miss a submission deadline.

Step-by-Step Using FreeAgent

1. Log into FreeAgent
2. Navigate to Taxes → VAT
3. Select the VAT period you want to file
4. Review all transactions and categories
5. Confirm the accuracy of your data
6. Click “Submit to HMRC” (after enabling MTD settings)
7. Receive your confirmation email and save it

FreeAgent is particularly handy for landlords thanks to its built-in property income features.

Know Your VAT Deadlines

VAT returns are typically due:

• 1 month + 7 days after the end of your VAT period
• For example: Q1 ends 31 March → VAT due by 7 May

Bonus: How to Register for MTD VAT with HMRC

If you haven’t yet registered for MTD VAT:

1. Go to GOV.UK’s MTD VAT registration
2. Sign in with your Government Gateway ID
3. Enter your VAT number and business info
4. Wait for confirmation (usually a few days)

Once confirmed, your software can connect with HMRC’s system.

Final Word: MTD VAT is Easier Than You Think

Submitting VAT returns via MTD isn’t scary, it’s smoother, faster, and far less error-prone when using the right tools.

Whether you choose Xero for its intuitive UI or FreeAgent for its landlord focus, you’re building a tax process that works for you.

Need help getting started? Contact Nuvo and we’ll walk you through setup, training, and submission.