A VAT return reports the VAT you charged on sales and the VAT you paid on purchases. Most businesses file one every three months. The deadline to file and pay is one calendar month and seven days after the end of the VAT period.
What a VAT return shows
A VAT return sets out:
- The VAT you charged customers, called output VAT
- The VAT you paid on purchases, called input VAT
- The difference, which is what you pay HMRC or reclaim from them
If your output VAT is higher, you pay the difference. If your input VAT is higher, HMRC pays you back.
When VAT returns are due
Most businesses have quarterly VAT periods. The filing and payment deadline is one calendar month plus seven days after the period ends.
| VAT period ends | File and pay by |
|---|---|
| 31 March | 7 May |
| 30 June | 7 August |
| 30 September | 7 November |
| 31 December | 7 February |
Your exact dates depend on the VAT periods HMRC sets for you, so always check your own. Payment often needs a few days to clear, so allow time if you pay by bank transfer.
[ Infographic: The VAT return timeline ]
Brief: a simple timeline showing the VAT period, then one month and seven days to file and pay.
Alt text: A VAT return timeline showing one month and seven days after the period to file and pay.
Caption: File and pay within one month and seven days of the period end.
How to file a VAT return
All VAT registered businesses file through Making Tax Digital. You keep digital records and send the return using compatible software, such as an accounting package. You cannot type the figures straight into the old HMRC website anymore.
What happens if you file or pay late
HMRC uses a points based system for late returns. Each late return adds a penalty point, and once you reach a set number of points you get a fixed penalty. Late payment brings separate charges that grow the longer the VAT is unpaid, plus interest.
If you cannot pay on time, contact HMRC before the deadline. They can often agree a time to pay arrangement, which spreads the bill and reduces the risk of higher charges.
Other VAT periods
Some businesses do not file quarterly:
- Monthly returns suit businesses that usually reclaim VAT, as they get refunds sooner.
- The Annual Accounting Scheme lets you file once a year and pay in instalments, which can smooth cash flow.
Frequently asked questions
How often do I file a VAT return? Most businesses file every three months. Some file monthly or once a year, depending on the scheme they use.
When is a VAT return due? The deadline to file and pay is one calendar month and seven days after the end of your VAT period.
How do I submit a VAT return? Through Making Tax Digital, using compatible software that keeps digital records and sends the return to HMRC.
What happens if I file my VAT return late? You get a penalty point. Once you reach the limit, a fixed penalty applies. Late payment brings separate charges and interest.
What if I cannot pay my VAT bill? Contact HMRC before the deadline. They can often set up a time to pay arrangement to spread the cost.