A VAT Return tells HMRC how much VAT you've charged and how much you've paid to other businesses. Most VAT-registered businesses send one every 3 months, and as of October 2026 the deadline to submit it and for your payment to reach HMRC is usually one calendar month and 7 days after the end of the period, even if you've no VAT to pay.
So for a quarter ending 31 March, both the return and the payment are due by 7 May. Here's what goes on it, how to send it, and how the points-based penalties work if you're late.
VAT Return deadlines
| Quarter ends | Return and payment due |
|---|---|
| 31 March | 7 May |
| 30 June | 7 August |
| 30 September | 7 November |
| 31 December | 7 February |
The rule is one calendar month and 7 days, so those dates follow from it. GOV.UK says the payment must reach HMRC's account by then, even if the deadline falls on a weekend or bank holiday, so allow time for the transfer. Your VAT online account shows your exact due dates.
What goes on the return
- Your total sales and purchases.
- The VAT you owe.
- The VAT you can reclaim on business purchases.
- Any VAT HMRC owes you, if you're reclaiming more than you charged.
You must include VAT on the full value of what you sell, even if you were paid in goods or services, such as a part-exchange, and even if you didn't charge the customer VAT: GOV.UK says whatever price you charge is treated as including VAT. HMRC can charge a penalty of up to 100% of any tax under-stated or over-claimed on an inaccurate return.
How to send your VAT Return
- Use software that's compatible with Making Tax Digital. That's the standard route for VAT-registered businesses; the Making Tax Digital thresholds explain who it applies to.
- Keep digital records through the quarter so the software can build the return.
- Submit by the deadline, including a nil return if there's nothing to declare.
- Pay so the funds reach HMRC by the same date.
- Check in your VAT online account that HMRC has received it.
Paper returns are only for businesses with an exemption from Making Tax Digital, for example on religious grounds or with no internet access. HMRC can charge up to £400 if you send a paper return without one.
The penalty points system
For accounting periods starting on or after 1 January 2023, late submission works on points. Each late return earns a point, including nil and repayment returns. When you hit your threshold, you get a £200 penalty, and another £200 for every late return while you stay at the threshold.
| How often you file | Points threshold |
|---|---|
| Annually | 2 |
| Quarterly | 4 |
| Monthly | 5 |
GOV.UK's example: a quarterly filer already on 3 points files late again, reaches 4 and gets a £200 penalty. Next quarter it files on time and pays nothing extra, but it's still at 4 points, so the next late return costs another £200. Points come off when you file on time going forward.
Late payment is separate. The penalty goes up after 16 days and again after 31 days, and interest runs from the first day the payment's overdue at the Bank of England base rate plus 4%. With a base rate of 4.5%, HMRC's own example gives a late payment interest rate of 8.5%.
Using estimates, and annual accounting
If you can't get accurate figures in time, you can ask HMRC for permission to use estimates, but you'll need a good reason. If HMRC agrees, GOV.UK says you won't be penalised unless you miss the deadline or make a careless or deliberate error, and you'll normally give the correct figures on your next return.
If you use the VAT Annual Accounting Scheme, GOV.UK says you can set up an email reminder through your VAT online account each time a return is due. On a normal quarterly cycle, put the dates in your own calendar instead: a reminder costs nothing, and a late return costs a point.
Fixing mistakes
You can correct errors from the last 4 years on your next return if the net value is £10,000 or less, or between £10,000 and £50,000 but less than 1% of your total sales. Bigger errors, and any deliberate ones, must be reported to HMRC separately. Add the net value to box 1 if you owe tax, or box 4 if it's due to you.
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Two useful reliefs: you can reclaim VAT on a bad debt once it's more than 6 months old, within 4 years and 6 months, and you can account for import VAT on the same return with postponed VAT accounting. For the bookkeeping side, these free accounting tools can help you keep the digital records MTD needs.
The verdict
The VAT Return itself is straightforward once your software is connected; the risk is the deadline. One month and 7 days goes quickly, and the payment has to clear by then, not just leave your account. Set reminders for the 7th of the month after each quarter, file nil returns when there's nothing to declare, and treat penalty points like driving licence points: a single late return costs nothing, but they add up to a £200 bill each time once you're at 4.
Frequently asked questions
When is a VAT Return due?
As of October 2026, usually one calendar month and 7 days after the end of your accounting period. That's also the deadline for your payment to reach HMRC.
How often do I send a VAT Return?
Usually every 3 months, called your accounting period. Some businesses file monthly or annually.
Do I need to file a VAT Return if I owe nothing?
Yes. GOV.UK says you must submit a return even if you have no VAT to pay or reclaim, and late nil returns still earn penalty points.
What is the penalty for a late VAT Return?
Each late return earns a point. At the threshold (4 points for quarterly filers) you get a £200 penalty, and £200 for each later late return while you're at it.
Can I file a paper VAT Return?
Only with an exemption from Making Tax Digital. HMRC can charge up to £400 for a paper return without one.
How do I correct a mistake on a VAT Return?
Net errors of £10,000 or less, or up to £50,000 if under 1% of sales, can be adjusted on your next return. Larger or deliberate errors must be reported separately.
What interest does HMRC charge on late VAT?
Bank of England base rate plus 4%, from the first day the payment is overdue.
