Taxation (UK) · The time limits for the submission of information, claims and payment of tax, including payments on account

VAT Return Deadlines, Payment Dates and Default Penalties

Updated 11 October 2026 · Fact-checked

A VAT return and the VAT payment are normally due one month and seven days after the end of the VAT period. Late submission earns penalty points, and a £200 penalty applies once the threshold is reached. Late payment penalties are 3% from day 16 and 6% plus a daily charge after day 30. Interest also runs.

Understand VAT Returns, Payment Deadlines and Default Penalties

VAT is collected through returns. Each VAT period (usually a quarter) you report output tax and input tax, and pay any net VAT owed. The return and the payment have the same normal deadline: one month and seven days after the end of the period. A quarter ending 31 March is due by 7 May.

HMRC treats filing and paying as two separate duties, so there are two separate penalty regimes. Late submission is punished by a points system. Late payment is punished by a percentage penalty based on how many days late and how much tax is unpaid. You can be penalised under both for the same period.

Under the points system, each late return earns one penalty point. When the points reach the threshold for your return frequency, you get a £200 penalty, and a further £200 for each later late return while you stay at the threshold. The threshold is 2 for annual returns, 4 for quarterly returns and 5 for monthly returns. Points expire after a period of compliance.

For late payment, the rates in the ACCA tables are: up to 15 days late, no penalty; 16 to 30 days, 3%; more than 30 days, 6% plus a daily penalty at an annual rate of 10%. The percentages apply to the VAT still unpaid. Interest on late VAT is charged as well, separately from the penalties.

Time limits also apply to registration. You must register when taxable turnover goes over the registration limit of £90,000. You may deregister voluntarily if turnover will fall to the deregistration limit of £88,000 or below. In both cases you must tell HMRC within 30 days of the trigger.

Key rules to remember

Normal return and payment deadline: Due date = end of VAT period + 1 month + 7 days; Applies to both the return and the payment for normal electronic filing. Quarter ended 30 June is due 7 August.
VAT registration limit and deregistration limit: Register if taxable turnover > £90,000; deregister if ≤ £88,000; Figures from the ACCA tax tables for this sitting. Standard rate is 20%.
Compulsory registration: historic test: Notify within 30 days of the end of the month in which turnover over the last 12 months exceeded £90,000; registered from the first day of the second month after that month; Example: limit exceeded in May, notify by 30 June, registered from 1 July.
Compulsory registration: future test: Notify within 30 days if taxable turnover is expected to exceed £90,000 in the next 30 days alone; Registration is effective from the date the trader realises this, which is the start of that 30 day window.
Late submission penalty points threshold: Annual 2; quarterly 4; monthly 5. Penalty £200 once the threshold is reached, and for each later late return; One point per late return. Points expire after a period of compliance.
Late payment penalty: Up to 15 days: nil; 16 to 30 days: 3%; over 30 days: 6% plus a daily penalty at an annual rate of 10%; Rates are from the ACCA tables. Apply to VAT still unpaid.
Daily penalty amount: Unpaid VAT × 10% × days ÷ 365; Used for the daily part of the penalty after day 30.

How to solve VAT Returns, Payment Deadlines and Default Penalties questions

Use this method for any question on VAT deadlines or default penalties.

1Identify the VAT period end date and whether returns are monthly, quarterly or annual.
2Work out the due date: period end plus one month and seven days. This is the deadline for both return and payment.
3Compare the actual filing date and payment date with the due date. Treat the two separately.
4For late filing, count the points. Is the threshold reached? If so, apply the £200 penalty.
5For late payment, count the days late and pick the band: 15 days or fewer, 16 to 30, or over 30.
6Apply the percentage to the unpaid VAT, and add the daily penalty only in the over 30 days band.
7For registration or deregistration questions, find the date of the trigger and add 30 days. State the effective date.
8Write the answer with each date and amount labelled so you can earn method marks.

Quickest way: Date and band shortcut

When to use it: Use in objective test questions where you must pick a due date or a penalty quickly.

Write the period end, then add one month and seven days. That is the due date.
Count days late from the day after the due date.
Use the bands: 15 or fewer is nil, 16 to 30 is 3%, over 30 is 6% plus daily.
Do the penalty sum once on the unpaid amount and check the answer is sensible.
For registration, think 30 days from the trigger; for the historic test it is 30 days from the month end.

Common mistakes in VAT Returns, Payment Deadlines and Default Penalties

Treating the late payment penalty as applying from day 1 of lateness.
Students remember that penalties exist but forget the grace period.
Fix: Remember that up to 15 days late there is no penalty. The first penalty band starts at 16 days.
Mixing up late submission and late payment penalties.
Both are called default penalties and both relate to the same return.
Fix: Submission uses points and a £200 penalty after the threshold. Payment uses percentages of unpaid VAT. Answer each separately.
Using the wrong due date, for example one month after the period end.
Students forget the extra seven days.
Fix: Always add one month and seven days to the period end.
Counting the 30 day registration period from the date turnover passed £90,000 under the historic test.
The future test counts from a different point.
Fix: For the historic test, count from the end of the month in which the limit was exceeded, and registration starts on the first day of the second month after.
Giving the same threshold of penalty points for all return frequencies.
Students remember a single number.
Fix: Annual 2, quarterly 4, monthly 5.
Adding the daily penalty to the 3% band.
The table row for over 30 days is easy to misread.
Fix: The daily penalty only comes with the more than 30 days band, together with the 6%.

Worked examples

Example 1

A company files quarterly VAT returns. The quarter ended 31 March 2027 shows VAT payable of £12,000. Calculate the due date and the late payment penalty if the VAT is paid on (a) 20 May 2027 and (b) 28 May 2027.

Show the solution

Due date: 31 March plus one month and seven days is 7 May 2027.
(a) 20 May is 13 days after 7 May. That is within 15 days, so there is no penalty.
(b) 28 May is 21 days after 7 May. That is in the 16 to 30 days band, so the penalty is 3%.
3% × £12,000 = £360.

Answer: Due date is 7 May 2027. Payment on 20 May: no penalty. Payment on 28 May: penalty of £360.

Example 2

A sole trader's taxable turnover for the 12 months to 31 May 2026 exceeded £90,000 for the first time. By when must she notify HMRC, and from what date is she registered?

Show the solution

The historic test is used: the limit was exceeded at the end of the month of May 2026.
She must notify within 30 days of the end of that month: 30 days after 31 May is 30 June 2026.
Registration is effective from the first day of the second month after the month the limit was exceeded.
The second month after May is July, so she is registered from 1 July 2026.

Answer: She must notify HMRC by 30 June 2026 and is registered from 1 July 2026.

Exam tips

Show the due date calculation. The marks often depend on getting it right first.
In Section C, label each penalty as submission or payment. Do not blend them.
Learn the three late payment bands cold, since they are given in the tax tables but you must apply them correctly.
Check that you use £90,000 for registration and £88,000 for deregistration, and 20% as the standard rate.
Read whether the question asks for a date, a penalty or an effective date; objective tests give no partial marks.

Practice questions from The time limits for the submission of information, claims and payment of tax, including payments on account

VAT Returns, Payment Deadlines and Default Penalties: frequently asked questions

When must VAT returns and payments be made?

Normally one month and seven days after the end of the VAT period. For a quarter ended 30 June this is 7 August. The same date applies to the return and the payment.

How long do you have to notify HMRC to register for VAT?

You have 30 days. Under the historic test this runs from the end of the month in which turnover over the last 12 months went over £90,000. Under the future test it applies when you expect turnover to exceed £90,000 in the next 30 days alone.

What is the difference between late submission and late payment penalties?

Late submission is penalised by points, then a £200 penalty once the threshold is reached. Late payment is penalised by a percentage of unpaid VAT depending on days late. A business can face both for the same period.

Is there a penalty if VAT is paid only a few days late?

Not if payment is up to 15 days late. From 16 days a 3% penalty applies, and over 30 days it is 6% plus a daily penalty at an annual rate of 10%. Interest on late paid VAT can still be charged.