Why pay to send HMRC a row of zeros?
A nil VAT return still has to go through Making Tax Digital software. On FileThat it is free, every time, with no subscription and no card needed.
HMRC-recognised
NIL returns always free
No monthly subscription
Nothing to declare is still a return
A VAT-registered business has to file a return for every period, even one with no sales and no purchases. A quiet quarter, a business that has not started trading yet, or one that has paused for a while: each still owes HMRC a return, and a business on quarterly returns files four a year.
Every one of those returns has to be sent through Making Tax Digital software. When that software costs a monthly fee, a business with nothing to declare pays all year to send zeros.
FileThat charges per return, and a NIL return is never charged. There is no subscription, so a year of NIL returns costs nothing at all.
Filing a NIL return
Sign up
Create a free account and add your business with its VAT number. No card needed.
Connect to HMRC
Give FileThat permission to file VAT for you. It shows the returns HMRC is expecting.
Tick Nil Return
Pick the period and tick Nil Return. Every one of the nine boxes is set to zero.
Confirm and file
Confirm HMRC's declaration and submit. A receipt is emailed to you, and no credit is used.
What else is free
One credit covers one new quarterly update, or one VAT return that is not a NIL return. Nothing else uses a credit.
The Income and Expenditure ledger, in full
Your first 4 credits when you sign up, which is a full first year of filing for a sole trader or landlord with one business who is not VAT registered, or a VAT registered limited company filing quarterly
NIL VAT returns, always
Your annual submission and final declaration, always
Correcting a quarterly update you have already filed
Amendments, and additional information such as Capital Gains, Employment and Pensions
Any submission HMRC does not accept
Ready when Income Tax goes digital
MTD for Income Tax is coming
Sole traders and landlords with qualifying income over £30,000 join Making Tax Digital for Income Tax from April 2027, and over £20,000 from April 2028.
Already set up
File your VAT free now and the same account files your quarterly updates when your turn comes. Your account and your business are already in place, so you add your National Insurance number and connect for Income Tax.
Check when it reaches you: the MTD checker.
Straight answers
What is a nil VAT return?
A VAT return with every box at zero, for a period with no sales, no purchases and no VAT to pay or reclaim. It is still a return HMRC expects, and it has to be filed by its deadline like any other.
Do I have to file a nil VAT return if I have not traded?
Yes. While your business is registered for VAT, HMRC expects a return for every period, whether or not you traded. Missing one can lead to penalty points, even when there was nothing to declare.
Can I file a nil VAT return online?
Yes, and it has to be through Making Tax Digital software unless HMRC has exempted you. FileThat files it straight to HMRC: pick the period, tick Nil Return, confirm the declaration and submit.
How much does a nil VAT return cost on FileThat?
Nothing. A return with every box at zero never uses a credit, whether or not you have any, and there is no monthly subscription. FileThat decides it from the figures, so any return with all nine boxes at zero is free.
What if I have something to declare next quarter?
Then that return uses one credit, from £3.99, taken only once HMRC accepts it. Your first 4 credits come free when you sign up, and the figures can come from your records in FileThat or from your own spreadsheet.
Does this help with Making Tax Digital for Income Tax?
Yes. If you are a sole trader or landlord, MTD for Income Tax reaches qualifying income over £30,000 from April 2027 and over £20,000 from April 2028. Filing your VAT with FileThat now means your account is already set up when it does.
File your next NIL VAT return free
Sign up, connect to HMRC and file. NIL returns never cost a credit, and there is no monthly subscription.
Get started free