When Is VAT Due?

VAT is due one month and seven days after your accounting period ends. Learn when to submit VAT returns, payment deadlines and how to file.

One of the most common questions I am asked by business owners is when VAT is actually due. It sounds simple on the surface, but in practice VAT deadlines can be confusing, especially if you are new to VAT, using a non standard accounting period, or operating under a special scheme.

In this article, I am going to explain clearly and practically when VAT is due in the UK, how VAT periods work, how payment deadlines are calculated, and what changes depending on the scheme you are using. I will also cover what happens if you miss a deadline, how HMRC charges penalties and interest, and how I advise clients to manage VAT so it never becomes a stressful last minute problem.

By the end, you should have a clear understanding of exactly when your VAT return and payment are due, and how to stay in control of it.

A quick reminder of how VAT works

Before looking at deadlines, it is worth briefly recapping how VAT operates in the UK.

If you are VAT registered, you must:

  • Charge VAT on your taxable sales

  • Keep proper VAT records

  • Submit VAT returns to HMRC

  • Pay any VAT due by the deadline

VAT is reported in fixed periods, usually quarterly, and HMRC expects both the VAT return and the payment to be submitted on time, every time.

VAT is not optional, and HMRC treats late VAT submissions very seriously.

VAT accounting periods explained

Your VAT accounting period is the period covered by each VAT return.

For most businesses, this is one of the following:

  • Quarterly VAT returns

  • Monthly VAT returns

  • Annual VAT returns

When you first register for VAT, HMRC will allocate your VAT quarters. These do not have to line up with the calendar year.

Common quarterly cycles include:

  • March, June, September, December

  • April, July, October, January

  • May, August, November, February

Your VAT return will cover three months at a time unless you are on a different scheme.

When VAT returns are due

In the UK, VAT returns are usually due one month and seven days after the end of the VAT period.

This applies to most VAT registered businesses that submit returns online, which is now almost everyone due to Making Tax Digital.

For example:

  • VAT period ending 31 March

    • VAT return due by 7 May

  • VAT period ending 30 June

    • VAT return due by 7 August

  • VAT period ending 30 September

    • VAT return due by 7 November

  • VAT period ending 31 December

    • VAT return due by 7 February

The key point is that the deadline is always the 7th of the second month after the VAT period ends.

When VAT payments are due

VAT payments are due on exactly the same date as the VAT return submission deadline.

This means:

  • VAT return due by the 7th

  • VAT payment due by the 7th

There is no separate payment deadline. HMRC expects both the return and the money by the same date.

If the 7th falls on a weekend or bank holiday, the deadline does not usually move, which can catch people out. Payment must still reach HMRC by the deadline, so planning ahead is essential.

Direct Debit and VAT deadlines

If you pay your VAT by Direct Debit, the rules are slightly different.

HMRC will collect the VAT automatically, but you must still submit the VAT return on time.

Key points to understand:

  • The VAT return deadline stays the same

  • HMRC usually collects the payment a few days after the deadline

  • You must submit the return early enough for HMRC to collect the payment

If you miss the return deadline, HMRC may not collect the payment, and you could still be charged penalties.

I always advise clients using Direct Debit to submit their VAT return at least three to five days before the deadline.

Monthly VAT returns and payment dates

Some businesses choose to submit VAT returns monthly instead of quarterly.

This is often done when:

  • The business regularly reclaims VAT

  • Cash flow benefits from faster refunds

For monthly VAT returns:

  • Each return covers one calendar month

  • The deadline is still one month and seven days after the period end

For example:

  • VAT period ending 31 January

    • VAT due by 7 March

The same rules apply, just on a monthly basis.

Annual Accounting Scheme deadlines

Under the Annual Accounting Scheme, you submit one VAT return per year instead of quarterly returns.

However, VAT payments are still made during the year, usually as advance instalments.

Under this scheme:

  • You make interim payments based on estimates

  • You submit one annual VAT return

  • The final balancing payment is due with the return

The annual VAT return deadline is usually:

  • Two months after the end of the VAT year

This scheme can simplify administration, but it does not remove the need for careful cash flow planning.

Flat Rate Scheme and VAT deadlines

The Flat Rate Scheme does not change when VAT is due.

If you are on the Flat Rate Scheme:

  • You still submit VAT returns quarterly or monthly

  • You still pay VAT by the standard deadlines

  • Only the calculation method changes

The VAT payment is still due by one month and seven days after the VAT period ends.

This is an important point, as some businesses mistakenly believe the Flat Rate Scheme changes deadlines. It does not.

Cash Accounting Scheme and VAT due dates

The Cash Accounting Scheme affects when VAT is accounted for, not when it is paid to HMRC.

Under this scheme:

  • You account for VAT when money is received or paid

  • You still submit VAT returns on the usual schedule

  • VAT is still due by the normal deadlines

The scheme can help with cash flow, but it does not give extra time to pay HMRC.

Making Tax Digital and VAT deadlines

Making Tax Digital has changed how VAT returns are submitted, but not when they are due.

Under Making Tax Digital:

  • VAT returns must be submitted digitally

  • Digital records must be kept

  • Compatible software must be used

The deadlines themselves remain the same. One month and seven days after the VAT period ends.

What has changed is HMRC’s ability to monitor compliance more closely.

What happens if VAT is paid late

If you pay VAT late, HMRC will charge interest from the day after the deadline.

Interest is calculated daily, so even short delays can add up over time.

In addition to interest, HMRC now operates a points based penalty system for late VAT returns.

VAT late submission penalties explained

Under the current VAT penalty system:

  • You receive penalty points for late VAT returns

  • Points accumulate for repeated late submissions

  • Once a threshold is reached, a financial penalty applies

The threshold depends on how often you submit VAT returns.

For quarterly filers:

  • Four penalty points trigger a £200 fine

For monthly filers:

  • Five penalty points trigger a £200 fine

Each additional late return after the threshold results in further penalties.

Late payment penalties for VAT

Late payment penalties are separate from late submission penalties.

HMRC charges:

  • No penalty if VAT is paid within 15 days

  • A penalty if VAT remains unpaid after 15 days

  • Additional penalties if VAT remains unpaid after 30 days

The longer VAT remains unpaid, the more expensive it becomes.

This is why acting early is always better than waiting and hoping for the best.

Time to Pay arrangements and VAT

If you cannot pay your VAT on time, it is often possible to agree a Time to Pay arrangement with HMRC.

This must be done:

  • Before the VAT becomes significantly overdue

  • As early as possible

If agreed, penalties may be reduced or avoided, although interest will usually still apply.

I strongly recommend speaking to an accountant before contacting HMRC to ensure the arrangement is realistic and properly structured.

How I advise clients to manage VAT deadlines

In practice, the best way to manage VAT is to remove the stress entirely.

I usually recommend:

  • Setting aside VAT as soon as it is received

  • Keeping VAT funds separate from day to day cash

  • Preparing VAT returns well before the deadline

  • Avoiding last minute submissions

Treating VAT as HMRC’s money rather than business cash makes a huge difference.

Common VAT deadline mistakes I see

Some of the most common issues I see include:

  • Assuming VAT is due at the end of the quarter

  • Forgetting the extra seven days

  • Missing deadlines because of weekends or holidays

  • Relying on Direct Debit without submitting the return

  • Leaving VAT returns until the last day

Most of these problems are avoidable with a simple system and reminders.

Why VAT deadlines matter more than you think

VAT is one of the taxes HMRC enforces most aggressively.

Missing VAT deadlines can lead to:

  • Penalties and interest

  • Cash flow problems

  • HMRC compliance checks

  • Stress and lost time

Staying on top of VAT is not just about compliance, it is about protecting the stability of your business.

Final thoughts

In the UK, VAT is usually due one month and seven days after the end of the VAT period. This applies to most businesses, regardless of whether they use standard VAT accounting, the Flat Rate Scheme, or the Cash Accounting Scheme.

Understanding when VAT is due, and planning for it properly, removes one of the biggest sources of financial stress for business owners. In my experience, businesses that struggle with VAT are rarely unprofitable. They are simply unprepared.

If VAT ever feels confusing or overwhelming, it is worth getting advice early. A small amount of guidance can prevent costly mistakes and keep HMRC firmly off your back.