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This is where the final tax calculations are made; once all of your relevant data has been entered into the system, the system will display your exact tax position, so; if for example your business purchases (input tax) have exceeded the total amount of vat you have charged to your clients, then the tax office will owe you the difference; that calculation will look something like this as an example:
(a) output tax total: £4,375.31
(b) input tax total: £6,479.68
The calculation is (a) - (b) = - £2,104.37
Now because this calculation is in the minus, this means that the tax office owes you the above amount (highlighted in red).
If however the roles were reversed and your output tax was more than your input tax, then the the remainder balance after you have deducted (b) from (a), that would be the amount you would owe to the tax office.
H2I handles all of these calculations for you.