Missing your VAT return deadline is an expensive mistake one that HMRC penalises automatically, without any discretion. Whether you are on quarterly, monthly, or annual VAT accounting, knowing exactly when your returns are due and what happens if you are late is essential for every VAT-registered business in the UK. This guide covers all VAT return deadlines for 2025/26, the penalty regime, and how Making Tax Digital (MTD) affects your VAT obligations.
The Basic VAT Return Deadline Rule
The standard deadline for VAT returns in the UK is: one calendar month and seven days after the end of your VAT accounting period. This applies to both the submission of your VAT return and the payment of any VAT owed.
If your quarterly VAT period ends on 31 March, your return and payment are both due by 7 May. If your period ends on 30 June, the deadline is 7 August.
The extra 7 days (on top of the one calendar month) only applies if you pay by Direct Debit. HMRC will collect the Direct Debit payment automatically 3 working days after the filing deadline meaning you need your bank account funded by approximately 4–5 May for the 7 May deadline. If you pay by Faster Payments, BACS, or CHAPS, payment must reach HMRC’s account by the deadline date itself.
Quarterly VAT Return Deadlines 2025/26
Most VAT-registered businesses file quarterly. Your specific quarter dates depend on when you first registered for VAT and which stagger HMRC allocated you. There are three standard stagger groups.
| VAT Period Ends | Return Deadline | Payment Deadline | Quarter |
| 31 March 2025 | 7 May 2025 | 7 May 2025 | Q4 2024/25 |
| 30 June 2025 | 7 August 2025 | 7 August 2025 | Q1 2025/26 |
| 30 September 2025 | 7 November 2025 | 7 November 2025 | Q2 2025/26 |
| 31 December 2025 | 7 February 2026 | 7 February 2026 | Q3 2025/26 |
| 31 March 2026 | 7 May 2026 | 7 May 2026 | Q4 2025/26 |
| 30 June 2026 | 7 August 2026 | 7 August 2026 | Q1 2026/27 |
The New HMRC VAT Penalty System (From 1 January 2023)
HMRC replaced the old default surcharge system with a new points-based penalty regime from 1 January 2023. Under this system, you accumulate penalty points for each late VAT return submission and when you reach the threshold for your submission frequency, you receive a fixed £200 penalty.
| Submission Frequency | Penalty Points Threshold | Penalty Issued |
| Annual VAT returns | 2 points | £200 |
| Quarterly VAT returns | 4 points | £200 |
| Monthly VAT returns | 5 points | £200 |
After the threshold is reached, each subsequent late return triggers an additional £200 penalty. Points expire after 24 months if you then submit all returns on time. Late payment of VAT separate from late submission attracts daily interest penalties calculated as 2.5% above the Bank of England base rate.
VAT and Making Tax Digital — What Has Changed?
Making Tax Digital for VAT (MTD for VAT) has been mandatory for all VAT-registered businesses since April 2022. Under MTD for VAT, you must maintain digital VAT records and submit your VAT return using HMRC-approved software manual submissions through the HMRC online portal are no longer available.
- Your accounting records must be stored digitally no more paper-based records
- You must submit your VAT return through MTD-compatible software (Xero, QuickBooks, FreeAgent, Sage, etc.)
- There must be a digital link between your records and your VAT return manual transfer of figures is not compliant
- Penalties apply for non-compliance with MTD requirements, separate from late submission penalties
Late Payment Penalties and Interest — Separate from Late Submission
Late submission penalties (the points system above) are separate from late payment penalties. If you submit your return on time but pay late, HMRC applies the following:
- Day 1–15 late: No penalty, but HMRC interest applies from day 1
- Day 16–30 late: 2% of the unpaid VAT at day 15
- Day 31+ late: 2% of the unpaid VAT at day 15 PLUS 2% of unpaid VAT at day 30
- Day 31 onwards: Daily interest at 2.5% above Bank of England base rate (currently 7.0% per annum)
This means that late payment is immediately costly — even a 16-day delay triggers a 2% penalty on your unpaid VAT. On a £10,000 VAT bill paid 30 days late, the penalty alone is approximately £400, plus daily interest. On £50,000 of VAT, a 30-day delay costs approximately £2,000 in penalties and interest.
VAT and Making Tax Digital ,What Every Business Must Know
Making Tax Digital for VAT (MTD for VAT) has been mandatory for all VAT-registered businesses since April 2022. Before MTD, businesses could submit VAT returns directly through HMRC’s online portal by manually typing in figures. This is no longer possible. Every VAT return must now be submitted through HMRC-approved software using a direct digital link to your VAT records.
What MTD for VAT Requires
- Digital VAT records : all VAT-relevant transactions must be recorded digitally in HMRC-approved software
- Digital submission : your VAT return must be filed through MTD-compatible software (not HMRC’s online portal)
- Digital links : data must pass between your records and your VAT return without manual re-entry of figures
- No spreadsheet-to-portal manual copying : even if you use a spreadsheet, a digital link (usually via bridging software) is required
HMRC-Approved MTD for VAT Software
- Xero : MTD-compatible, quarterly submissions in one click
- QuickBooks : full MTD support including VAT scheme management
- FreeAgent : MTD-compliant, built for contractors and small businesses
- Sage : comprehensive MTD support across all Sage products
- Bridging software (e.g., DataDear, Tax Optimiser) : for businesses using Excel spreadsheets
Faqs about VAT Return Deadline
What happens if I miss my VAT return deadline?
Under the new penalty points system introduced in January 2023, you receive one penalty point for each late VAT return. When you reach the threshold (4 points for quarterly filers), HMRC issues a £200 fixed penalty. Each subsequent late return while above the threshold triggers another £200 penalty. Late payment attracts separate interest charges at 2.5% above the Bank of England base rate.
Can I get an extension on my VAT return deadline?
HMRC does not routinely grant extensions on VAT return deadlines. In exceptional circumstances such as a serious illness, bereavement, or natural disaster you may be able to appeal a penalty, but the deadline itself does not change. AccFirm manages all VAT return deadlines on behalf of clients, ensuring returns are submitted well before the due date.
What is the MTD VAT deadline?
The MTD VAT submission deadline is the same as the standard VAT return deadline one calendar month and seven days after the end of your VAT period. The difference is that from April 2022, all submissions must be made through MTD-compatible software, not through HMRC’s online portal. AccFirm submits all client VAT returns through MTD-compatible software as standard.
What is the VAT Annual Accounting Scheme deadline?
Under the Annual Accounting Scheme, you submit one VAT return per year due two months after the end of your annual accounting period. You make interim payments during the year based on your estimated annual VAT liability. The final balancing payment is due with your annual return. This scheme can improve cash flow for businesses with predictable VAT positions.