When are VAT returns due? A complete guide for UK businesses

For many business owners across the North East and beyond, Value Added Tax (VAT) is one of the most consistent (yet often most stressful) aspects of financial management. It’s a tax that requires timely record-keeping and diligence.

The most common question we hear from newly registered businesses is simple: when are VAT returns due? While the question is straightforward, the answer involves understanding HMRC’s specific cycles, the rules surrounding different accounting schemes, and the modern requirements of Making Tax Digital (MTD).

What is a VAT return?

Before we dive into the specifics of timing, it is important to define exactly what we are tracking. A VAT return is a form you submit to HMRC, usually every three months, that reports:

• Your total sales and purchases
• The amount of VAT you charged to your customers
• The amount of VAT you paid to other businesses

If you have charged more VAT than you have paid, you must pay the difference to HMRC. If you’ve paid more than you’ve charged, you can usually reclaim the difference.

Any business with a VAT-taxable turnover exceeding the current threshold (currently £90,000) must register. However, many businesses choose to register voluntarily to reclaim VAT on expenses. Regardless of why you are registered, you must know when VAT returns are due to avoid financial penalties.

When are VAT returns due?

For most UK businesses, VAT returns are submitted on a quarterly basis. This means you report your figures to HMRC four times a year.

The standard deadline for both submitting the return and paying any VAT owed is one calendar month and seven days after the end of your VAT period.

This one month and seven days rule is the golden rule of VAT. It applies to both the digital submission of the form and the cleared funds reaching HMRC’s bank account.

Different VAT schemes and how deadlines vary

While the quarterly cycle is the most common, HMRC offers several different schemes designed to simplify accounting for small businesses. When you use these schemes, the answer to “when are VAT returns due?” can change significantly.

• The Annual Accounting Scheme means you submit only one VAT return annually. You make advance payments throughout the year based on an estimate, and then a final balancing payment when you submit your return. The deadline for this is usually two months after the end of your annual period.
• The Cash Accounting Scheme doesn’t necessarily change your deadline date, but it changes what you report. You only account for VAT on the dates you actually receive or pay money, rather than the date on the invoice. This is fantastic for cash flow but requires diligent record-keeping to meet quarterly deadlines.
• The Flat Rate Scheme is designed for small businesses with a turnover under £150,000. This scheme allows you to pay a fixed percentage of your turnover as VAT. The deadlines generally follow the standard quarterly rule, but the calculation is much simpler.

What happens if you miss a VAT return deadline?

HMRC has recently overhauled its penalty system to be more consistent. If you lose track of when VAT returns are due, HMRC uses a points-based penalty system.

Late submission penalties

For every VAT return you submit late, you receive one penalty point. Once you hit a certain threshold of points, you receive a £200 fine. Every subsequent late submission while you are at that threshold triggers another £200 fine.

Late payment penalties

Late payments are handled separately and are calculated based on how late the payment is:

• Up to 15 days late: No penalty if you pay in full.
• Between 16 and 30 days late: A 2% penalty on the VAT you owe.
• 31 days or more late: A 2% penalty on what was owed at day 15, plus another 2% on what was owed at day 30, plus daily interest.

Missing a deadline flags your business as high risk in HMRC’s systems, which could lead to closer scrutiny of your accounts in the future.

Making Tax Digital (MTD) and VAT submissions

You can no longer answer the question of when your tax returns are due without mentioning Making Tax Digital (MTD). While many are already familiar with the digital shift for VAT, the system is now expanding to fundamentally change Income Tax Self-Assessment (ITSA).

MTD for VAT

Since 2022, nearly all VAT-registered businesses have been required by law to keep digital records and use MTD-compatible software (such as Xero or QuickBooks) to submit their returns.

The Expansion to Income Tax (April 2026)

From April 2026, MTD for Income Tax will become mandatory for sole traders and landlords. This change is being phased in based on your qualifying income, i.e. your total gross income from self-employment and property rentals:

• April 2026: Mandated for those earning above £50,000.
• April 2027: Mandated for those earning above £30,000.
• April 2028: Mandated for those earning above £20,000.

You can learn more about this change in our guide to Making Tax Digital for Income Tax.

How MTD improves the filing process

Whether you are filing for VAT or Income Tax, moving to a digital-first approach offers two major advantages:

• Because the software pulls data directly from your digital records, the risk of typos or calculation mistakes during submission is virtually removed.
• You can see exactly how much tax you owe at any given moment. This means your final tax bill never comes as a surprise, allowing for much better cash flow management throughout the year.

Common VAT deadline mistakes businesses make

Here are the most common mistakes we see business owners make regarding their VAT obligations:

• Misunderstanding VAT periods, as not every business follows the calendar year.
• Many owners submit their return on the 7th but don’t initiate the bank transfer until later that day. If the funds don’t clear by midnight, it’s technically a late payment.
• If you leave your receipts until the 6th of the month, you are almost guaranteed to make a mistake. VAT accuracy requires consistent, weekly attention to your books.
• Some owners think that if they haven’t made any taxable sales in a quarter, they don’t need to file. You must always file a nil return if you are VAT-registered, even if there is no tax to pay.

How a VAT accountant helps you stay compliant

Working with a dedicated VAT accountant changes your relationship with tax from one of fear to one of control. By partnering with an accountant, we can:

• Check that you aren’t overpaying VAT (by missing valid expenses) or underpaying (which leads to fines).
• Know exactly when VAT returns are due for your specific business and ensure everything is submitted well in advance.
• From partial exemption rules to the complexities of importing goods, we handle the technical heavy lifting that software alone can’t do.

Why choose One Two One Accounts?

At One Two One Accounts, we pride ourselves on providing stress-free, compliant, and friendly VAT support for businesses of all sizes.

Whether you are a sole trader just hitting the VAT threshold or an established company looking to outsource your entire finance department, we have the experience to help.

We don’t just tell you when VAT returns are due; we give you the peace of mind that they are being handled by professionals who care about your business’s success as much as you do.

Ready to stop worrying about VAT deadlines? Contact us today for a chat about how we can take the weight of VAT off your shoulders.