VAT Return Submission Deadlines Explained

VAT returns follow a quarterly reporting cycle, unless you are on an annual accounting scheme or a specially adjusted period. For most businesses:

• Your VAT period covers 3 months
• Your VAT return deadline is 1 calendar month + 7 days after the period ends
• Payment must also be made by the same deadline

Example:
VAT period: 1 April – 30 June
Submission & payment deadline: 7 August

These deadlines apply regardless of weekends or bank holidays — HMRC still expects payment to arrive on time.

You can check your exact VAT periods and deadlines in your HMRC online account or through your MTD-compliant accounting software.

Deadlines can be viewed:

• Inside your HMRC Business Tax Account
• In your MTD-compatible accounting software
• On VAT registration documents
• Through your accountant's filing dashboard

The HMRC MTD page also outlines the structure:
👉 https://www.gov.uk/vat-returns

Many businesses mistakenly assume all VAT periods align with calendar quarters — but your assigned quarter depends on when you registered for VAT.

There are several common reasons why businesses miss the VAT Return Submission Deadline:

1. Cash Flow Pressure

Businesses delay filing because they don’t have enough cash to pay what they owe.
This is a major mistake.
You can file on time and pay late — the penalty is smaller than filing late.
Missing the return itself triggers bigger consequences.

2. Disorganisation and Missing Records

If invoices, receipts, or digital records are incomplete, last-minute confusion often leads to missed deadlines.

3. Misunderstanding VAT Periods

Not all businesses run Jan–Mar, Apr–Jun cycles.
Your VAT quarters may be:

• Feb–Apr
• Mar–May
• Nov–Jan
  …depending on HMRC’s initial assignment.

4. MTD Software Errors

Using non-compliant software or failing to refresh HMRC connections can cause failed submissions.

5. Staff Turnover or Internal Oversight

If VAT responsibility isn’t clearly assigned, deadlines slip through the cracks.

HMRC’s penalty framework operates under the VAT Default Surcharge (for older periods) and the Late Submission Penalty System (new rules introduced January 2023).

Under the current rules:

You receive:

• 1 penalty point for each missed return
• A £200 penalty once you hit your penalty threshold
• Additional £200 penalties for each further missed deadline

Threshold depends on your filing frequency:

• Quarterly VAT returns: 4 points → penalty
• Monthly returns: 5 points → penalty
• Annual returns: 2 points → penalty

HMRC also charges late payment interest until the VAT is fully paid.

Full guidance:
👉 https://www.gov.uk/guidance/vat-late-submission-and-late-payment-penalties

Even if you submit your return on time but pay late, HMRC applies:

• Daily interest starting the day after the deadline
• Additional late payment penalties after 15 and 30 days

For businesses relying on cash flow, these extra charges quickly add up.

One of the benefits of working with professionals such as Loyals is that they can help you forecast VAT liabilities early, preventing surprises and helping you stay cash-prepared each quarter.

If your VAT return shows a repayment, missing the deadline delays HMRC releasing the funds.
Many businesses rely on quarterly VAT refunds to stabilise cash flow, especially exporters, construction firms, and zero-rated suppliers.

Without timely submission, refunds may be delayed by weeks or months.

Some businesses choose to switch to:

Monthly VAT Returns

Useful when you regularly reclaim VAT.
Cash flow improves because refunds come monthly.

Annual Accounting Scheme

For businesses wanting simpler admin.
You make advance payments and one annual return.

To change schemes, you must apply to HMRC.

Here’s how professionals ensure on-time submissions:

1. Automate VAT Period Alerts

Xero / QuickBooks / Sage offer automatic deadline reminders.

2. Keep Digital Records Continuously Updated

Don’t wait until quarter-end — reconcile weekly.

3. Assign VAT Responsibility Internally

Businesses that assign VAT to “someone in finance” often run into trouble.
Someone must own it.

4. Use MTD-compliant digital software

Manual spreadsheets or mismatched systems are major sources of delay.

5. Work with a VAT specialist accountant

Loyals provides:

• Quarterly VAT preparation
• Digital record audits
• Early VAT liability forecasting
• On-time submission guarantees

A small e-commerce business missed their VAT return deadline by 10 days due to staff turnover.

Consequences:

• 1 penalty point
• Late payment interest
• Automated HMRC review request
• Delayed quarterly refund

When Loyals took over their VAT management, we:

• Set up automated digital filing
• Reconciled historical VAT records
• Implemented real-time VAT forecasting
• Took over all HMRC communication

They have not missed a deadline since.