VAT return deadlines: one month and seven days, and the points-based penalties

VAT is the deadline that never stops. A client on standard quarterly returns has four filings a year, and a practice with fifty VAT-registered clients has two hundred – each with its own quarter pattern. The rule is simple; the volume is the problem.

The deadline

For most businesses, the VAT return and payment are due 1 calendar month and 7 days after the end of the VAT period.

Clients paying by Direct Debit have a little longer, because HMRC collects the payment 3 working days after the deadline. Businesses in the Annual Accounting Scheme file one return two months after their year end, and those making payments on account follow a different timetable.

All VAT-registered businesses must keep digital records and file through Making Tax Digital compatible software.

Late submission penalties

Since January 2023, late VAT returns are subject to a points-based system. Each late return earns one point. When the points reach a threshold, a £200 penalty is charged, and a further £200 for every later late return while at the threshold.

Points expire after a period of good compliance, but reaching the threshold means filing every return on time for a full period before they can be cleared.

Late payment penalties

Late payment penalties apply separately:

• paid within 15 days of the due date: no penalty, but interest is charged
• unpaid at day 15: a first penalty based on the tax outstanding
• unpaid at day 30: a further first penalty
• from day 31: a second penalty accruing daily

The penalty rates were increased from April 2025, so check HMRC’s current rates when advising a client. Late payment interest runs at the Bank of England base rate plus 4%.

Practical tips for practices

1. Record the quarter end you just filed. In Deadlio, Last VAT quarter filed sets the next quarter and its due date, and Mark done rolls it on by three months.
2. Know each client’s stagger. Quarters ending March, June, September and December are not the only pattern – check the VAT certificate.
3. Get records in early. A 7-day buffer after month end is not enough time to chase missing invoices.
4. Watch the points. A client sitting at three points on quarterly returns is one late return from a penalty.

Related guides

• Self Assessment deadlines
• MTD for Income Tax quarterly updates
• Corporation Tax payment deadline
• See it in practice: When a team member leaves, their VAT clients’ quarters go quiet
• All deadline guides

This guide is general information for accountancy practices and is not a substitute for checking the current rules on GOV.UK. Last reviewed October 2026.