VAT return deadlines: the full picture for accountants

VAT is one of the UK's highest-frequency filing obligations. Understanding the deadline structure — and the new penalty points regime — is essential for any practice managing VAT-registered clients.

The standard deadline

For the majority of businesses using standard quarterly VAT accounting, returns and payments are due one calendar month and seven days after the end of the VAT period. This means:

• Period ending 31 March → due 7 May
• Period ending 30 June → due 7 August
• Period ending 30 September → due 7 November
• Period ending 31 December → due 7 February

For businesses on the VAT Annual Accounting Scheme, only one return per year is filed, with the due date nine months after the scheme year end.

Non-standard VAT periods

HMRC assigns businesses to one of three VAT period groups (ending in March/June/September/December, February/May/August/November, or January/April/July/October). Some businesses stagger periods for cash flow reasons or because their accounting year doesn't align with a March quarter end. Always check the client's VAT registration certificate to confirm their period group.

The new penalty points system

Since January 2023, HMRC replaced the previous default surcharge with a points-based late submission regime:

• Each late return earns one penalty point
• Points expire after two years if the business meets all subsequent deadlines
• A financial penalty of £200 is charged when points reach the threshold (2 for annual filers, 4 for quarterly, 5 for monthly)
• A further £200 fine applies for every subsequent late return while above the threshold

Late payment penalties

Separate from late submission penalties, HMRC also charges late payment penalties on unpaid VAT:

• 0–15 days late: no penalty if paid in full
• 16–30 days: 2% of the outstanding amount
• 31+ days: 4% of the outstanding amount, plus further daily interest

Making Tax Digital for VAT

All VAT-registered businesses are now required to use MTD-compatible software and submit returns through the MTD system. Paper returns are no longer accepted (except in very limited exemption cases).