What a VAT return is and who must file one
If you are registered for VAT, you must submit a VAT return even if you have no VAT to pay or reclaim. The return reports the VAT you charged on sales (output tax), the VAT you paid on business purchases (input tax) and the net amount you owe or are owed.
Most businesses file every 3 months. Each 3-month block is an "accounting period", and HMRC tells you your periods when you register. If you have not registered yet, start with our VAT registration service.
VAT return deadlines
The deadline for filing and paying is usually one calendar month and 7 days after the end of the accounting period. The return and payment must both reach HMRC by then, even if the deadline falls on a weekend or bank holiday.
| Quarter ends | Return and payment due |
|---|---|
| 31 March | 7 May |
| 30 June | 7 August |
| 30 September | 7 November |
| 31 December | 7 February |
Your own quarters may end in different months (for example April, July, October and January). Check your periods in your VAT online account, or add them to our compliance deadline calendar.
Making Tax Digital for VAT
Making Tax Digital (MTD) applies to every VAT-registered business. It covered businesses above the threshold from April 2019 and all VAT-registered businesses from 1 April 2022. Under VAT Notice 700/22 you must:
- keep VAT records digitally in "functional compatible software";
- use digital links between programs, so figures are not retyped by hand from one system to another;
- submit the return from that software, not by typing numbers into a web form.
Compatible software can be bookkeeping software that files directly, or bridging software that sends figures from a spreadsheet. HMRC allows exemptions for businesses that are digitally excluded, for example because of internet access, disability or religious beliefs. New registrations are signed up to MTD automatically.
MTD for VAT is separate from Making Tax Digital for Income Tax, which applies to sole traders and landlords. See our guide to Making Tax Digital for Income Tax if that affects you too.
What the VAT return boxes cover
The return has 9 boxes. VAT Notice 700/12 explains each one in detail. In summary:
| Box | What it covers |
|---|---|
| 1 | VAT due on sales and other outputs, including import VAT under postponed accounting |
| 2 | VAT due on goods acquired in Northern Ireland from EU member states |
| 3 | Total VAT due (box 1 plus box 2) |
| 4 | VAT reclaimed on purchases and other inputs |
| 5 | Net VAT to pay or reclaim (box 3 minus box 4) |
| 6 | Total value of sales and other outputs, excluding VAT (including zero-rated and exempt sales) |
| 7 | Total value of purchases and other inputs, excluding VAT |
| 8 | Goods supplied from Northern Ireland to EU member states |
| 9 | Goods acquired in Northern Ireland from EU member states |
Most businesses outside Northern Ireland enter 0 in boxes 2, 8 and 9. You can only reclaim input tax in box 4 when you hold a valid VAT invoice or other required evidence.
Paying your VAT bill
Payment is due by the same deadline as the return, and you need to allow time for the money to reach HMRC. Direct Debit is the simplest option for quarterly filers:
- set up the Direct Debit at least 3 working days before you submit your VAT return;
- HMRC then collects the payment automatically 3 working days after the payment deadline;
- if you file late, the payment is taken 3 days after you file.
Late submission penalties (points system)
For VAT periods starting on or after 1 January 2023, HMRC uses penalty points for late returns. Each late return earns 1 point. When you reach the threshold for your filing frequency, you get a £200 penalty, and a further £200 for every later late return while you stay at the threshold. Nil and repayment returns count too.
| Filing frequency | Points threshold | Period of compliance to reset points |
|---|---|---|
| Annual | 2 | 24 months |
| Quarterly | 4 | 12 months |
| Monthly | 5 | 6 months |
At the threshold, points only reset to zero after a full period of compliance with every return on time, and once all outstanding returns for the previous 24 months are submitted. Below the threshold, individual points expire automatically after about 24 months.
Late payment penalties and interest
Late payment penalties are separate from late submission points. HMRC's late payment penalty guidance (increased in 2025) sets these charges:
| Days overdue | Penalty |
|---|---|
| 1 to 15 | No penalty if paid in full |
| 16 to 30 | First penalty: 3% of the VAT owed at day 15 |
| 31 or more | First penalty: 3% of the amount owed at day 15 plus 3% of the amount still owed at day 30. Second penalty: a daily rate of 10% a year on the outstanding balance |
Late payment interest is also charged from the first day a payment is overdue, at the Bank of England base rate plus 4%. If you cannot pay in full, a Time to Pay arrangement agreed with HMRC can mean lower or no late payment penalties.
Correcting errors on earlier returns
Small errors can be fixed on your next return. HMRC lets you adjust the next return if the net value of errors is £10,000 or less, or between £10,000 and £50,000 but not more than 1% of box 6 sales for the return period. You add the net amount to box 1 (VAT you owe) or box 4 (VAT owed to you) and keep a record of the error.
Errors above those limits, and any deliberate errors, must be reported to HMRC separately. The general time limit for corrections is 4 years from the end of the period in which the error happened (VAT Notice 700/45).
What is included in our VAT returns service
- A check of your sales and purchase records for the quarter, supplied in your bookkeeping software or a spreadsheet.
- Calculation of the 9 boxes and a summary for you to approve.
- Submission through MTD-compatible software under the authorization you give.
- The payment amount, deadline and Direct Debit date shown in your portal.
- Filed returns and HMRC acknowledgements stored in your portal.
- Reminders before each quarter's deadline.
Not included
- Full bookkeeping or catch-up bookkeeping.
- Advice on complex VAT areas such as partial exemption, place of supply or the Capital Goods Scheme. These need a licensed tax adviser.
- Paying HMRC for you. The VAT bill is paid from your own account.
How it works
- Order and intake: start your order and tell us your VAT number, periods and the software you use.
- Secure upload: share records or software access through the portal each quarter (see our security page).
- Preparation and review: our filing team prepares the return and flags missing invoices or unusual entries.
- Your approval: you confirm the figures before anything is filed.
- Submission and tracking: the return is filed through MTD software and the status shows in your portal.
- Reminders: you get a reminder ahead of the next quarter's deadline.
What we need from you
- Your VAT registration number and accounting periods.
- Access to your bookkeeping software, or a spreadsheet of sales and purchases for the quarter.
- VAT invoices and receipts for costs you want to reclaim.
- Details of any imports, exports, marketplace sales or VAT scheme you use (Flat Rate or Cash Accounting).
- Your records at least 2 weeks before the deadline, so there is time to query anything missing.
Our team starts each return once the quarter's records are complete.
Doing it yourself vs using us
Many small businesses file their own returns directly from bookkeeping software, and if your records are clean that works well. You pay nothing to HMRC to file.
Our service is useful when you are running a UK company from abroad, when you keep records in spreadsheets and need bridging software, or when you want a second check on input tax claims before they reach HMRC. For companies that also need year-end filings, see accounts and CT600 and the UK plans on our pricing page.
Sources
- GOV.UK: Sending a VAT Return
- GOV.UK: VAT Returns deadlines
- GOV.UK: VAT Notice 700/22, Making Tax Digital for VAT
- GOV.UK: How to fill in and submit your VAT Return (VAT Notice 700/12)
- GOV.UK: Pay your VAT bill by Direct Debit
- GOV.UK: Penalty points and penalties if you submit your VAT Return late
- GOV.UK: Remove penalty points after submitting your VAT Return late
- GOV.UK: How late payment penalties work if you pay VAT late
- GOV.UK: Late payment interest if you do not pay VAT or penalties on time
- GOV.UK: Correct errors in your VAT Return
- GOV.UK: How to correct VAT errors and make adjustments or claims (VAT Notice 700/45)
Fees, deadlines and rules on this page were last checked on 27 September 2026.