Back arrowBack to feature hub

Calculate and pay your VAT bill

What is the VAT tool?

You can use the VAT feature in our Toolkit to calculate and account for the VAT charged on transactions you’ve made with your Starling business account. You can also see what your VAT position is, connect to your HMRC profile, and submit and pay your VAT bill electronically.

VAT made easy

Keeping on top of all-things VAT is simple with our Toolkit. You can:

  • Record VAT.
    Record VAT rates and apply VAT treatments to your transactions.
  • Calculate VAT.
    See how much your VAT bill will be and save towards it with Spaces.

  • Submit and pay your VAT bill.
    Connect to HMRC and stay in compliance with Making Tax Digital (when you use the VAT tool with the Cash Accounting Scheme or Flat Rate Scheme using a cash method).

How does the VAT tool work?

Start by making sure we have the correct information about you - including your VAT registration number, date, and VAT scheme. All looks good? Then you can use the VAT tool to connect to your HMRC account. Simply click Connect on the top right hand corner of the VAT summary page and follow the journey. Once you’re connected and synced with HMRC, the Toolkit will be able to access data from HMRC to create your VAT returns. Hop onto the VAT tool whenever you need to review your returns, save for your VAT bill and, when you’re ready, submit your VAT return to HMRC.

Where can I find the VAT tool?

Once you’ve subscribed to the Business Toolkit in your mobile app, log in to online banking on your desktop. On the left side of the window, you’ll see a tab called ‘VAT’. Click it and manage your VAT from there.

Log in to online banking

The rundown

  • Submit Making Tax Digital VAT returns from your bank account
  • Fully compliant HMRC accredited software
  • Connect and sync with HMRC
  • View your current and historic MTD VAT returns
  • Real-time VAT calculation based on your Bookkeeping transactions
  • VAT savings goals automatically set to the VAT you owe
  • Track the progress of your VAT submission
  • Supports Cash and Flat Rate (Cash) VAT schemes
  • Set default VAT rates to automate bookkeeping
  • Supports cross-border VAT reporting
  • Export your VAT return data
  • Adjust for Import VAT
  • Supports Construction Reverse Charge VAT reporting

Want to know more?

Head on over to our VAT FAQs, or discover all of the additional great features of our Business Toolkit.

Apply for a Starling business account today and enjoy app-based banking at its best.

Start your application