If your VAT return deadline falls on a weekend or bank holiday, HMRC will not automatically give you extra time to file or pay. HMRC has recently reminded taxpayers of this rule after seeing more late VAT returns and payments based on incorrect information from AI tools and third-party websites.
For Scottish SMEs, sole traders and company directors, the practical message is simple: check your VAT dates carefully and do not assume the next working day will be accepted.
When is a quarterly VAT return due?
For quarterly VAT returns, the deadline is usually one month and seven days after the end of the VAT quarter.
For example, if your VAT quarter ends on 30 June, the VAT return is due by 7 August.
The payment deadline is the same. However, you also need to allow time for the payment to clear into HMRC’s account.
That means it is not enough to start the payment on the deadline if your payment method takes longer to process.
What if you use the annual accounting scheme?
If you use the annual accounting scheme, the VAT return is normally due two months after the end of the accounting period.
The deadline rules still need to be checked carefully. A weekend or bank holiday does not automatically move the date.
Can you submit a VAT return over the weekend?
Yes. HMRC says VAT returns can be submitted over the weekend or on a bank holiday.
If this is not possible, the return should be submitted on the last working day before the due date.
This is the point that can catch businesses out. Some people assume that if a deadline falls on a Saturday, Sunday or bank holiday, the VAT return deadline moves to the next working day. HMRC has made clear that this is not the case.
Why has HMRC issued this reminder?
HMRC has responded to a growing trend of late VAT return submissions and late VAT payments.
Some of this appears to be linked to incorrect information provided by artificial intelligence tools and third-party websites.
AI can be useful for general support, but it should not be treated as the final authority on HMRC deadlines. For tax compliance, businesses should check official guidance or speak to their accountant.
What happens if you miss the payment deadline?
There are different consequences depending on whether the issue is late payment, late submission, or interest.
A late payment penalty is not charged immediately. HMRC only charges a late payment penalty if a VAT payment is more than 15 days late.
So, if a business waits until the first working day after the payment deadline, a late payment penalty should not usually apply. However, this does not mean there are no consequences.
What happens if you submit the return late?
If a VAT return is submitted one day late, the business will usually receive a penalty point.
A £200 late submission penalty is not charged until the business reaches the relevant points threshold.
For quarterly VAT returns, the threshold is four points. For annual VAT returns, the threshold is two points.
Penalty points expire after 24 months, as long as the business remains below the threshold.
This means that submitting one quarterly VAT return late each year should not normally lead to a late submission penalty. However, repeated late filing can quickly become a problem.
What about late payment interest?
Late payment interest can still apply, even where no penalty is charged.
HMRC currently charges late payment interest at 7.75%. Interest runs from the due date until the date the VAT payment is made.
For example, if a VAT payment of £40,000 is ten days late, the interest charged would be just under £85.
That may not sound significant for a one-off delay, but it is still an avoidable cost. It can also become more serious if deadlines are missed regularly.
What should businesses do now?
If your business is VAT-registered, now is a good time to review how you track and manage VAT deadlines.
In particular, check:
- when your next VAT return is due
- whether the deadline falls on a weekend or bank holiday
- how long your payment method takes to reach HMRC
- whether your bookkeeping or accounting software gives enough notice
- whether anyone in the business is relying on unofficial deadline information
For businesses in Glasgow, Ayrshire and across Scotland, this is mostly about good admin and forward planning. VAT deadlines are predictable, but they can still cause problems if they are left too late.
The safest approach is to file and pay ahead of the deadline wherever possible.
Need help keeping on top of VAT deadlines?
Missing a VAT return deadline by one day may not always result in an immediate fine, but it can still lead to penalty points and late payment interest.
Clear processes can help you avoid unnecessary costs and last-minute stress.
If you are unsure about your VAT return deadline, payment timing or penalty position, speak to us for advice. HMRC guidance on penalty points and penalties for submitting a VAT return late is available online.