For most businesses filing quarterly, the four deadlines in 2026 fall on 7 May, 7 August, and 7 November 2026, and 7 February 2027. Getting these dates wrong, or confusing filing with payment, is one of the most common compliance errors UK businesses make.
Why VAT Return Deadlines Matter
VAT returns are a key compliance tool for HMRC, used to ensure businesses report and pay the correct tax on time. Under the penalty system introduced in January 2023, late VAT return submissions result in penalty points, and once the threshold for your filing frequency is reached, a £200 fixed penalty is charged. Each additional late submission after that triggers a further £200 penalty.
The same deadline applies to both submission and payment (usually one month and 7 days after the VAT period end). Filing on time but paying late will still result in late payment penalties and interest, which are charged separately from submission penalties.
When is the VAT Return Deadline?
The standard rule is straightforward: one calendar month and seven days after your VAT period ends.
If your quarter ends on 31 March, the deadline is 7 May. If it ends on 30 June, the deadline is 7 August. The seven extra days are there to allow time for payment processing, not as a grace period.
If the deadline falls on a weekend or bank holiday, it does not automatically move to the next working day. You must still submit the return and make sure HMRC receives payment by the deadline. Check your HMRC VAT online account to confirm the exact date for each period, particularly around bank holidays.
The Standard Quarterly Deadlines for 2026
Most VAT-registered businesses in the UK file quarterly. HMRC assigns businesses to one of three stagger groups, and the deadlines depend on which group applies to you.
(Stagger Group 1) has quarter-end dates in March, June, September, and December:
Quarter Ending | Deadline |
|---|---|
31 March 2026 | 7 May 2026 |
30 June 2026 | 7 August 2026 |
30 September 2026 | 7 November 2026 |
31 December 2026 | 7 February 2027 |
(Stagger Group 2) has quarter-end dates in April, July, October, and January:
Quarter Ending | Deadline |
|---|---|
30 April 2026 | 7 June 2026 |
31 July 2026 | 7 September 2026 |
31 October 2026 | 7 December 2026 |
31 January 2027 | 7 March 2027 |
(Stagger Group 3) has quarter-end dates in May, August, November, and February:
Quarter Ending | Deadline |
|---|---|
31 May 2026 | 7 July 2026 |
31 August 2026 | 7 October 2026 |
30 November 2026 | 7 January 2027 |
28 February 2027 | 7 April 2027 |
Monthly and Annual VAT Returns
Not every business files quarterly.
Monthly VAT Returns
Some businesses file monthly VAT returns instead of quarterly. The filing deadline follows the same rule as quarterly returns, i.e., 1 month + 7 days after the end of each calendar month. Monthly returns are typically used by businesses that regularly reclaim VAT on purchases, as this system allows them to process VAT refunds more quickly. Although it involves more administrative work, monthly filing can improve cash flow for businesses in a consistent repayment position.
Annual Accounting Scheme
The Annual Accounting Scheme allows businesses to submit just one VAT return per year. Instead of the usual deadline, businesses must file the return 2 months after the end of their 12-month accounting period.
Businesses also make advance VAT payments throughout the year, either:
- Nine monthly payments, each equal to 10% of the estimated VAT
- Three quarterly payments, each equal to 25% of the estimated VAT
This scheme works well for businesses that have a stable VAT situation and don’t often claim VAT refunds, as refunds are given less frequently under this scheme.
Note
The Annual Accounting Scheme is only available to businesses with VAT taxable turnover of £1.35 million or less.
Making Tax Digital: How You Must File
Since April 2022, all VAT-registered businesses must file under Making Tax Digital for VAT, regardless of turnover. This means:
- You must use MTD-compatible accounting software such as Rental Bux, Xero, QuickBooks, etc that appears on HMRC's official software supplier list
- You must maintain digital VAT records in the required format
- You cannot submit through HMRC's old online portal unless HMRC has granted a specific digital exemption
Submitting a VAT return outside of MTD without an exemption is considered non-compliant by HMRC, which may result in additional penalties. If you use spreadsheets for bookkeeping, bridging software can connect your files to HMRC's MTD system while maintaining digital links. Ensure your software is connected to HMRC's API for electronic submissions, with features like deadline tracking and automated reminders.
Introducing RentalBux: Our MTD Software for Landlords
Rental Bux simplifies MTD submissions with direct HMRC API integration. It helps businesses track deadlines, automate reminders, and avoid penalties. Stay compliant and stress-free with Rental Bux.
What Counts as "On Time"?
Both your VAT return and payment must reach HMRC by 11:59 PM on the deadline date. To ensure timely payment, the method you use matters as processing times vary:
- Faster Payments (online banking): Same day or next day, accepted up to the deadline date.
- CHAPS: Same day, typically used for larger payments. Be sure to check your bank’s cut-off time.
- BACS: Takes three working days, so initiate at least three working days before the deadline.
- Direct Debit: HMRC collects the payment automatically three working days after the submission deadline, but your return must still be submitted on time.
We recommend submitting your return at least three working days before the deadline to allow time for payment processing and to resolve any last-minute errors. Relying on the final day increases the risk of issues, such as heavy traffic on MTD software or late data entry errors that can’t be corrected in time.
Note
Card payments have been discontinued by HMRC for VAT since 2020.
Penalties for Missing the Deadline
HMRC applies two separate penalty regimes, which run independently of each other.
Late Submission Penalty Points
The thresholds are:
- Quarterly filers: 4 points
- Monthly filers: 5 points
- Annual filers: 2 points
Points remain on your account for 24 months. To clear them, you need to have filed all outstanding returns and maintained a full 24-month period of compliant filing. Changing your filing frequency does not automatically reset existing points.
Late Payment Penalties
These are separate from submission points and are based purely on how many days late your payment is:
- Days 1 to 14: no financial penalty, but interest starts accruing from day 1
- Day 15: first penalty of 3 percent of the VAT outstanding
- Day 30: a further 3 percent (making the first penalty total 6 percent)
- Day 31 onwards: a second daily penalty accrues at an annual rate of 10 per cent on the outstanding balance
On top of these penalties, late payment interest is charged from day 1 at the Bank of England base rate plus 4 percent per year. From 6 April 2025, the interest rate will be Bank of England base rate plus 4 percent.
A Practical Example
A business owes £15,000 in VAT, and the payment deadline is 7 May 2026. The business makes the payment on day 51 (i.e., 51 days after the deadline).
Here’s how the penalties break down:
- First Penalty (Day 15):
A penalty of 3% of £15,000, which equals £450. - First Penalty Increased (Day 30):
The penalty increases by another 3%, adding another £450 (total for the first penalty: £900). - Second Penalty (Day 31 to Day 51):
A second penalty is calculated at 10% per year, applied for 21 days. This comes to £86.30.
Total Penalty: £900 (first penalty) + £86.30 (second penalty) = £986.30, plus interest accruing daily from day 1.
How to Avoid Missing a VAT Return Deadline
These steps can help businesses consistently file on time every quarter:
Don't Miss Your VAT Return Deadline Again
Late VAT returns cost more than you think. Get the 2026
deadlines, penalty rules, and filing tips before HMRC acts.
Conclusion
Your VAT return is due one month and seven days after the end of your VAT period, with the same deadline for both filing and payment. All VAT-registered businesses must file using Making Tax Digital (MTD) software as manual submissions are no longer accepted. Key deadlines for Stagger Group 1 in 2026 are 7 May, 7 August, 7 November, and 7 February 2027. Check your HMRC account for your specific dates.
If you cannot pay on time, file the return first and contact HMRC about a Time to Pay arrangement. Missing both deadlines can lead to penalties. Set up Direct Debit and use MTD software to track deadlines and confirm submission receipt.
Frequently Asked Questions
Yes, you can request a change to your VAT return period by contacting HMRC or applying through your online VAT account. Changes typically take effect from the next tax period, and you must provide a valid business reason.
If your input VAT exceeds your output VAT, HMRC will usually process your refund within 30 days of receiving a correctly submitted return. You can request a direct credit to your bank account or choose to carry it forward to your next VAT return.
You must keep VAT records for at least six years. HMRC may ask for supporting invoices and receipts during an VAT audit to verify the figures in your return. Digital copies are acceptable.
- 7 Autumn Budget 2026 Predictions Every Landlord Should Know - 8 October 2026
- Tax Implications of Transfer on Death for UK Property - 7 October 2026
- How to Pay Your Simple Assessment Tax Bill - 4 October 2026
