If you run a VAT-registered business, missing a return deadline now costs you penalty points rather than an immediate surcharge — but rack up enough points and a flat £200 penalty follows, then another £200 for every late return after that. This guide covers exactly when 2026 VAT returns are due, how the deadline is calculated, the Making Tax Digital rules, and how the points system actually works.
The Core Rule: One Month and 7 Days
For standard quarterly VAT returns, the deadline to both submit your return and pay is:
One calendar month plus 7 days after the end of your VAT accounting period.
The same date applies to filing and payment. Crucially, your payment must reach HMRC’s bank account by that date — not merely be sent. The deadline stands even if it falls on a weekend or bank holiday, so allow extra time for funds to clear.
| VAT quarter ends | Return and payment due |
|---|---|
| 31 December 2025 | 7 February 2026 |
| 31 January 2026 | 7 March 2026 |
| 28 February 2026 | 7 April 2026 |
| 31 March 2026 | 7 May 2026 |
| 30 April 2026 | 7 June 2026 |
| 31 May 2026 | 7 July 2026 |
| 30 June 2026 | 7 August 2026 |
| 30 September 2026 | 7 November 2026 |
| 31 December 2026 | 7 February 2027 |
If you pay by Direct Debit, HMRC collects the payment automatically about 3 working days after the filing deadline — one of the simplest ways to avoid a late-payment slip.
Making Tax Digital for VAT
Making Tax Digital (MTD) for VAT is mandatory for virtually all VAT-registered businesses, regardless of turnover. In practice this means you must:
- Keep your VAT records digitally
- Submit returns using MTD-compatible software (not by typing figures into the old online portal)
- Maintain digital links between the software in your record-keeping chain — no manual copy-and-paste of totals
If you’re still keeping records on a spreadsheet, you can use bridging software that connects the spreadsheet to HMRC, provided the digital link is preserved.
The Late-Submission Penalty: How Points Work
Since the points-based regime replaced the old default surcharge, late submission and late payment are penalised separately.
Late submission — penalty points
Each VAT return you file late earns one penalty point. When you reach the points threshold for your filing frequency, you receive a £200 penalty — and a further £200 penalty for every subsequent late submission while you remain at the threshold.
| Filing frequency | Points threshold |
|---|---|
| Monthly returns | 5 points |
| Quarterly returns | 4 points |
| Annual returns | 2 points |
So for a typical quarterly filer, you can be late three times and only collect points; the fourth late return triggers the £200 penalty.
Clearing your points
Points expire automatically after 24 months, provided you haven’t hit the threshold. Once you’re at the threshold, the rules are stricter — you must:
- Submit all returns on time for a set “period of compliance” (12 months for quarterly filers), and
- Ensure HMRC has received all returns due in the previous 24 months
Only then does the points total reset to zero.
Late payment — a separate penalty
Paying late is penalised on top, and the charge escalates the longer the tax is outstanding:
- Up to 15 days late — no penalty if you pay or arrange a Time to Pay plan
- 16 to 30 days late — a first penalty begins to accrue
- 31 days or more — a higher first penalty, plus a second penalty that builds daily until the bill is cleared
Late-payment interest also runs from the due date until you pay, charged at the Bank of England base rate plus a margin.
Worked Example
Riverside Catering Ltd files VAT quarterly. It submits the returns for the quarters ending 31 March, 30 June, and 30 September 2026 a few days late each — three points, no penalty yet. The quarter ending 31 December 2026 is also late, taking it to 4 points — the quarterly threshold. That fourth late return triggers a £200 penalty. The next late return would cost another £200.
To clear the points, Riverside must then file every return on time for 12 months and make sure all returns from the prior 24 months are in.
How to Stay Compliant
- Set the deadline a week early in your calendar — aim to file and pay by the end of the month following the quarter, not the 7th
- Use Direct Debit so payment is collected automatically
- Reconcile as you go in MTD software rather than scrambling at quarter-end
- If you can’t pay, contact HMRC about Time to Pay before the deadline to avoid the worst of the late-payment penalties
Key Takeaway
UK VAT returns and payments are due one month and 7 days after the period ends, filed through Making Tax Digital software. Late filing now earns penalty points: the threshold is 4 points for quarterly filers (5 monthly, 2 annual), and hitting it brings a £200 penalty, repeated for each further late return. Late payment is penalised separately, with interest running from the due date.
Use the VAT calculator to work out the VAT on a sale or purchase, the VAT Flat Rate Scheme calculator to see whether the simplified scheme saves you money, and the corporation tax calculator to plan your wider business tax bill.