How Bookkeeping Software Helps with VAT Submissions – [Full Guide]

Team Nomi

Oct 07, 2026
6 minutes read

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Managing VAT can take time, especially when you handle bookkeeping, bank transactions, invoices, and VAT returns separately. The right bookkeeping software can bring these tasks together and make VAT submissions easier to manage.

Bookkeeping software can help you record transactions, track VAT, reconcile bank accounts, prepare VAT returns, and submit them to HMRC through Making Tax Digital (MTD). HMRC requires most VAT-registered businesses to use compatible software to submit VAT returns.

In this blog, we explain how bookkeeping software supports VAT submissions, what features to look for, and how VAT software can reduce manual work.

How does bookkeeping software help with VAT returns?

Bookkeeping software can make several steps involved in preparing a VAT return easier.

1. Record sales and purchases

The software records your sales, purchases, and business expenses. You can assign the correct VAT treatment to transactions so the information is ready for reporting.

2. Import bank transactions

Bank feeds can automatically bring transactions into your bookkeeping system. This saves time compared with entering every transaction manually.

For example, Nomi can connect to client bank accounts and import transactions daily. Its bank rules can also help reduce the time spent on bank reconciliation.

3. Reconcile transactions

Bank reconciliation helps you match transactions in your bank account with your bookkeeping records.

Regular reconciliation can help you identify missing transactions, duplicate entries or other differences before preparing a VAT return.

4. Calculate VAT

Once your bookkeeping records are up to date, the software can use the recorded transactions to help calculate VAT figures.

The exact calculation depends on the transactions and VAT scheme used by the business, so you should always review the figures before submission.

5. Prepare the VAT return

Accounting software for VAT returns can bring the relevant figures together and help you prepare the return.

This allows you to check the information before sending it to HMRC.

6. Submit the VAT return to HMRC

MTD-compatible software can connect with HMRC and submit VAT returns digitally.

Nomi is MTD-compatible and allows users to prepare and submit VAT returns directly to HMRC without leaving the software.

Can bookkeeping software automate VAT filing?

Yes, VAT software can automate several parts of the VAT filing process.

However, automation does not mean you should submit a return without checking it first. You remain responsible for making sure your records and VAT figures are accurate.

Depending on the software, you can automate tasks such as:

• • Importing bank transactions
  • Applying bank rules
  • Matching transactions
  • Reconciliation
  • VAT calculations
  • Preparing VAT returns
  • Tracking VAT deadlines
  • Sending reminders
  • Submitting VAT returns to HMRC

Nomi combines bank feeds, bookkeeping and MTD VAT submissions in one platform. This can help reduce repetitive bookkeeping work before a VAT return is submitted.

What features should bookkeeping software for VAT submissions have?

The right features can make VAT management easier and reduce manual bookkeeping work.

Here are some features to consider:

How Nomi helps with VAT submissions

Nomi combines bookkeeping and VAT features in one cloud-based platform designed for UK accountants, bookkeepers and businesses.

Submit VAT returns through MTD

Nomi is MTD-compatible and allows users to submit VAT returns directly to HMRC from the software.

You can complete bookkeeping, review the VAT return, and submit it without switching to another system.

Import bank transactions

Nomi’s bank feed integration imports transactions from connected bank accounts. This can reduce manual data entry and help keep bookkeeping records up to date.

Reconcile transactions

Bank reconciliation helps you match transactions with invoices, bills, and other bookkeeping records. Nomi also provides bank rules to help automate recurring transaction processing.

Manage different VAT schemes

Nomi supports standard VAT, flat rate VAT, and cash accounting VAT schemes, helping accountants manage VAT for different clients from the same platform.

Track VAT deadlines

Nomi provides deadline management and VAT task features to help users monitor VAT periods and upcoming submissions.

Keep bookkeeping and VAT together

Instead of managing bookkeeping and VAT filing in separate systems, Nomi connects bookkeeping, VAT, accounts production and tax workflows within one platform.

Bookkeeping software vs manual VAT submissions

Bookkeeping software can reduce the number of manual steps involved in VAT preparation and filing.

The right approach depends on the size of your business, transaction volume and how you manage your accounts.

Manage VAT submissions with Nomi

Managing VAT does not have to mean moving information between separate systems. Bookkeeping software can help you record transactions, reconcile accounts, prepare VAT returns and manage MTD submissions from one place.

Nomi combines bookkeeping, bank feeds, VAT management and MTD VAT submissions in one cloud-based platform. You can also connect VAT with other accounting and tax workflows as your practice grows.

Start your 30-day free trial and see how Nomi can simplify bookkeeping and VAT submissions.

Frequently asked questions

1. Can bookkeeping software submit VAT returns?
   Ans: Yes, MTD-compatible bookkeeping software such as Nomi can help prepare and submit VAT returns directly to HMRC.

2. Is bookkeeping software VAT compliant?
   Ans: Some bookkeeping software supports MTD for VAT. Nomi is MTD-compatible and supports digital VAT return submissions to HMRC.

3. Can VAT software automate VAT registration?
   Ans: VAT registration and VAT filing are different processes. Nomi helps manage VAT records and submissions, but VAT registration with HMRC is a separate process.

4. What is the best software for submitting VAT returns in the UK?
   Ans: The right software depends on your business needs. Nomi supports MTD VAT submissions, bank feeds, reconciliation and VAT management in one platform.

5. Can VAT software automate VAT registration?
   Ans: VAT registration is separate from VAT return filing. Software features vary, so check whether your chosen platform supports VAT registration before relying on automation.