HMRC are having to remind taxpayers that there is no deadline extension if a VAT return submission date falls on a weekend or a bank holiday.
Due Date Reminder
The deadline for submitting quarterly VAT returns is set for one month plus seven days following the end of the quarter. For instance, for the quarter that concludes on 30 June, the due date is 7 August:
- This deadline also applies to payments made to HMRC, but it is important to account for the time required for the payment to clear HMRC’s account.
- If you are utilizing the annual accounting scheme, the VAT return is typically due two months after the conclusion of the accounting period.
In response to the increasing number of late VAT return submissions and payments resulting from inaccurate information provided by artificial intelligence (AI) and third-party websites, HMRC has taken action. VAT returns can be submitted during weekends or on bank holidays; if that is not feasible, the return should be filed on the last working day before the due date.
Penalty Notification
Despite HMRC’s advisories, taxpayers who are occasionally late should be cautious to avoid penalties, except for late payment interest:
- Late payment penalty: HMRC imposes a penalty only if a VAT payment is made more than 15 days after the due date, so this should not be a concern if a taxpayer waits until the first working day following the payment deadline.
- Late submission penalty: A delay of just one day will incur a penalty point, but a £200 penalty is only applied once a threshold of four points is reached (or two points for annual submissions), and points will expire after 24 months, provided the taxpayer stays below the threshold.
- Late payment interest: This interest is currently charged at a rate of 7.75% from the due date until the payment is made. For example, being ten days late on a VAT payment of £40,000 would result in an interest charge of just under £85.
Submitting one late quarterly VAT return each year should not result in a late submission penalty being applied.