VAT Return: Deadlines, Penalty Points and Late Payment

The deadline #

One calendar month and 7 days after the end of the accounting period. The same date covers both filing the return and the money arriving at HMRC. It does not move for weekends or bank holidays, so allow for payment clearing time.

Quarter ends	Return and payment due
31 March	7 May
30 June	7 August
30 September	7 November
31 December	7 February

You must file a return for every period even if there is no VAT to pay and nothing to reclaim. A nil return is still a return.

VAT penalties come in two separate halves #

This trips people up constantly. Filing and paying are different obligations with different consequences, and you can be caught by one without the other. The VAT penalties regime treats a late return and a late payment as entirely separate matters.

Late return: a penalty point, and eventually a £200 charge.
Late payment: a percentage of what you owe, rising the longer it sits.

File on time and pay late and you get the payment charges but no point. Pay on time and file late and you get the point but no charge.

Late filing: penalty points, not fines #

Since VAT periods beginning on or after 1 January 2023, a single late return does not produce a fine. It produces a point. The fine arrives when you hit the threshold for how often you file.

You file	Points threshold	Penalty at threshold	Each late return after
Annual	2 points	£200.00	£200.00
Quarterly	4 points	£200.00	£200.00
Monthly	5 points	£200.00	£200.00

Nil returns count. A dormant business filing nil returns late accrues points at exactly the same rate as a trading one, and quarterly filers reach the threshold after four missed deadlines, which is one year of consistent lateness.

Points clear after a period of clean compliance, generally 24 months of everything filed on time, and you must also have submitted any outstanding returns.

Late payment: what it actually costs #

How late	Charge	Was, before 6 April 2025
Days 1 to 15	No penalty. Interest still runs from day one	Same
Day 15	3% of what is outstanding	2%
Day 30	A further 3% of what remains	2%
Day 31 onwards	A second penalty accruing daily at 10% a year	4% a year

On a £10,000.00 VAT bill, 60 days late

Charge	Now	Under the old rates
First penalty at day 15	£300.00	£200.00
Further penalty at day 30	£300.00	£200.00
Daily penalty, days 31 to 60	£82.19	£32.88
Total penalties	£682.19	£432.88

Penalties only. Late payment interest runs on top from day one, at a rate that moves with the Bank of England base rate, so check the current figure with HMRC.

If you cannot pay #

Act inside the first 15 days. Agreeing a Time to Pay arrangement with HMRC within that window prevents the late payment penalty entirely. Interest still runs, but the penalty does not apply.

This is the single most valuable thing on this page. A phone call in week two costs you nothing. The same call in week five costs £600.00 on a £10,000.00 bill, and the meter is running.

Note that filing and paying are separate obligations. Agreeing Time to Pay does not excuse a late return, and the point still lands.

What goes on the return #

Nine boxes, and most accounting software fills them from your records.

Box	What it shows
1	VAT due on sales and other outputs
2	VAT due on acquisitions from EU member states, for Northern Ireland
3	Total VAT due, boxes 1 and 2 added
4	VAT reclaimed on purchases and other inputs
5	Net VAT to pay or reclaim, the difference between boxes 3 and 4
6	Total value of sales excluding VAT
7	Total value of purchases excluding VAT
8	Total value of goods supplied to EU member states, for Northern Ireland
9	Total value of acquisitions from EU member states, for Northern Ireland

Returns must be filed through Making Tax Digital compatible software, with digital records behind them. Typing figures into a website by hand is no longer an option for most businesses. Software compared on price.

If you are on the Flat Rate Scheme #

The boxes work differently. You apply your flat rate percentage to VAT-inclusive turnover rather than working out output and input VAT separately, and you generally cannot reclaim input VAT except on capital assets above a threshold.

The VAT return boxes, and what goes in each #

A UK VAT return has nine boxes. The VAT return format has not changed in years, and knowing which figure belongs where removes most of the anxiety about filing one.

Box	What goes in it
1	VAT due on sales and other outputs, including on reverse charge purchases
2	VAT due on acquisitions of goods into Northern Ireland from EU member states
3	Total output VAT, boxes 1 and 2 added together
4	VAT reclaimed on purchases and other inputs
5	The net VAT to pay or reclaim, the difference between boxes 3 and 4
6	Total value of sales, excluding VAT
7	Total value of purchases, excluding VAT
8	Goods supplied from Northern Ireland to the EU, excluding VAT
9	Goods acquired into Northern Ireland from the EU, excluding VAT

A VAT return example for a construction subcontractor shows the reverse charge clearly. You put the net sale in box 6 and nothing in box 1, because you charged no VAT. The contractor at the other end puts that same VAT in box 1, reclaims it in box 4, and does not touch box 6 at all. There is more in reverse charge VAT.

VAT return dates, and filing online #

Filing a VAT return online is now the only route for almost everyone, and it has to go through Making Tax Digital compatible software rather than by typing figures into the HMRC website. A spreadsheet plus bridging software counts. A spreadsheet on its own does not.

The VAT return filing due date comes from your own VAT accounting period rather than from a national deadline, so two businesses filing in the same month can have different dates. VAT return submission is due one calendar month and seven days after the period ends, and the payment has to clear by that same date, which is the half people forget.

VAT return software #

VAT returns must be filed using software that connects to HMRC. You cannot type the figures into a web form any more, which is what surprises businesses returning after a gap.

Filing a VAT return on Xero, on QuickBooks or on Sage works the same way in each: the software reads the figures from your records and submits them to HMRC directly. VAT return software comes in two shapes: full accounting packages that keep the records and file the return, and bridging software that takes figures from a spreadsheet and submits them. Bridging is cheaper and legitimate, provided the underlying records are kept digitally.

What the main packages cost is compared on accounting software compared, and the invoicing software comparison covers the free end of the market.

Common questions #

When is my VAT return due?

One calendar month and 7 days after the end of your accounting period. That is the deadline for filing and for the money reaching HMRC, and it does not move for weekends or bank holidays.

What is the penalty for a late VAT return?

There is no automatic fine for the first late return. You get a penalty point. Once you reach the threshold for your filing frequency, which is 4 points for quarterly filers, you get a £200 penalty and a further £200 for every late return after that.

Do nil returns count for penalty points?

Yes. A nil return filed late earns a point exactly like any other. Businesses that file nil returns casually accumulate points without realising it.

What is the penalty for paying VAT late?

Nothing if you pay within 15 days. At day 15 you are charged 3% of what is outstanding, at day 30 a further 3%, and from day 31 a second penalty accrues daily at 10% a year. Those rates rose from 2%, 2% and 4% on 6 April 2025.

Can I avoid a late payment penalty if I cannot pay?

Yes, if you act quickly. Agreeing a Time to Pay arrangement with HMRC within 15 days of the due date prevents the penalty, though interest still runs from day one.

Not registered yet? How VAT registration works, or check whether you have crossed the threshold.