Unlike Corporation Tax, where filing and payment fall on different dates, VAT keeps it simple: filing and payment are due on the same date. That also means there's no three-month buffer to lean on if the money isn't there yet.
The deadline
For most VAT-registered businesses on quarterly returns, both the return and the payment are due one calendar month and 7 days after the end of the VAT period. Miss it on either side (filing late or paying late) and separate penalty regimes apply.
Quick reference
| Quarter ends | Filing & payment due |
|---|---|
| 31 March | 7 May |
| 30 June | 7 August |
| 30 September | 7 November |
| 31 December | 7 February |
Late submission: it's points-based now
Since January 2023, late VAT returns work on a points system, not an automatic fine per lateness. You get one point for each late return. Once you hit the threshold for your filing frequency (4 points for quarterly filers, 5 for monthly, 2 for annual), a flat £200 penalty applies, and another £200 for each further late return after that. Points expire after 24 months of on-time filing, provided you're also caught up on any outstanding returns.
Crucially, this applies even to nil returns and repayment returns: a return where you're owed money back still needs to go in on time to avoid picking up a point.
Late payment: a separate, escalating penalty
Paying late triggers its own penalty, calculated on how many days late the payment is:
- Within 15 days: no penalty, provided you pay in full or agree a Time to Pay arrangement
- Day 16–30: a first penalty of 3% of the VAT outstanding at day 15
- Still unpaid at day 30: a further 3% of the balance outstanding at day 30, added on top — so the first penalty can reach 6% in total
- From day 31: a second penalty starts accruing daily at 10% per year on the remaining balance, on top of the first penalty
On top of both penalties, HMRC charges late payment interest from the day after the due date until the VAT is paid in full, currently set at the Bank of England base rate plus 4%.
⚠️ There's no grace period once you're past day 15. The penalties and interest apply automatically and compound the longer the balance sits unpaid; a small shortfall left for a few months adds up faster than the headline percentages suggest.
If you can't pay in time
Contacting HMRC before the deadline to arrange Time to Pay stops the clock on the late payment penalty, even if the underlying VAT is still outstanding. Waiting until after the deadline to reach out doesn't get the same treatment: the penalty has already started by then.
💡 Rooby tip: Rooby shows each client's VAT due date with a live day-count on the dashboard, so the deadline is visible well before it becomes urgent, for both the accountant and, where enabled, the client themselves.
Rooby tracks every client's VAT position and due date, calculated live from Xero, so nothing is left to a spreadsheet reminder.