When Is VAT Due?

If your business is VAT registered in the UK, you must submit VAT returns and make payments to HMRC on time to stay compliant and avoid penalties. Understanding when VAT is due depends on your accounting periods, your VAT scheme, and whether you file quarterly, monthly or annually.

This guide explains when VAT becomes payable, how to submit a return, and what deadlines apply depending on your reporting frequency.

When Does VAT Become Payable in the UK?

VAT becomes payable when you submit your VAT return, which summarises how much VAT you’ve charged and paid during the period.

For most businesses, VAT returns are filed quarterly, and the VAT payment is due one calendar month and seven days after the end of the accounting period. So if your VAT quarter ends on 31 March, the return and payment are due by 7 May.

This deadline applies whether or not you owe VAT – even if your return is nil, you must still file.

What Are the Taxable Periods for VAT?

Your taxable periods are usually:

• Quarterly (default) – four returns per year

• Monthly – if you reclaim a lot of VAT or want to improve cash flow

• Annually – under the Annual Accounting Scheme

Your VAT accounting period is assigned by HMRC when you register. You can change it by applying through your VAT online account.

Each return covers:

• VAT you’ve charged on sales (output VAT)

• VAT you’ve paid on purchases (input VAT)

• The difference is either paid to or reclaimed from HMRC

When Must I Pay My VAT By?

VAT payment is due one month and seven days after the end of your VAT period. This includes:

• The due date to submit your VAT return

• The date by which your VAT payment must reach HMRC

If your period ends on 31 March, your VAT and payment must reach HMRC by 7 May. If the 7th falls on a weekend or bank holiday, the payment must clear before that date.

You can pay by Direct Debit, bank transfer, debit or corporate credit card (fees apply).

Can I File a Monthly VAT Return?

Yes. Businesses can choose to file VAT returns monthly, especially if they regularly reclaim VAT. This can improve cash flow and result in more frequent refunds from HMRC.

To do this, update your return frequency in your VAT online account, and notify HMRC. Once approved, your new reporting cycle will begin on the next VAT period.

When Is the VAT Return Deadline?

The deadline is the same as the payment deadline:

One calendar month and seven days after the end of the VAT period.

For example:

• Quarter ends: 30 June

• VAT return and payment due: 7 August

This applies to both quarterly and monthly schemes. The Annual Accounting Scheme works differently, with one return a year and either monthly or quarterly advance payments.

How to Submit a VAT Return

You must now submit VAT returns digitally using Making Tax Digital (MTD) compatible software if you're above the VAT threshold or registered voluntarily and opted in.

Steps:

1. Keep digital VAT records using approved software

2. Complete your VAT return within the software

3. Submit the return to HMRC by the deadline

4. Make your payment using an approved method

You’ll get confirmation when the return is received.

What Happens If You Miss the VAT Deadline?

If you miss the return or payment deadline:

• HMRC may issue a default surcharge or penalty

• You risk interest charges on late payments

• Persistent late filing can trigger compliance reviews or inspection

Always check your VAT deadlines in your Government Gateway or VAT account dashboard and set reminders to avoid late penalties.

Final Thoughts

VAT is typically due one month and seven days after the end of your accounting period. Whether you file quarterly, monthly or annually, understanding your deadlines and filing using the correct digital process is essential to avoid penalties.

Make sure your records are up to date, use compatible software under Making Tax Digital, and always pay your VAT on time. If your business needs more frequent cash flow or regularly reclaims VAT, switching to monthly returns may also be worth considering.