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You send it from Making Tax Digital software, usually every 3 months. The deadline is 1 calendar month and 7 days after the quarter ends, so a quarter ending 30 September 2026 is due by 7 November 2026.
Since 1 April 2022 every VAT-registered business, whatever its turnover, has had to keep digital VAT records and send VAT returns through software that works with Making Tax Digital (MTD). This page follows GOV.UK as checked on 16 October 2026. It is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
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What you need before your first return
Software. You need either a package that keeps your VAT records and sends returns, or bridging software that sends figures from a spreadsheet. GOV.UK keeps a list of compatible products. When you connect it, the software asks you to give it authority to reach your HMRC data, and that authority lasts 18 months.
Digital records. VAT Notice 700/22 says the figures must move through your records by digital links. Once a figure is in your software or spreadsheet, retyping it or copying and pasting it into another program does not count.
Your VAT online account. For most businesses it no longer sends returns, but it shows due dates, whether HMRC has your return and any penalty points.
You do not need to sign up for MTD for VAT. HMRC signs up any remaining VAT-registered businesses automatically, unless they are exempt.
What goes on the return
A VAT return tells HMRC how much VAT you charged and how much you paid to other businesses. It has 9 boxes, and your software fills them from your records:
| Box | What it holds |
|---|---|
| 1 | VAT due on your sales |
| 2 | VAT on goods brought into Northern Ireland from the EU |
| 3 | Total VAT due (box 1 plus box 2) |
| 4 | VAT you are reclaiming on purchases |
| 5 | The difference between box 3 and box 4: what you pay, or what HMRC repays |
| 6 | Total sales before VAT |
| 7 | Total purchases before VAT |
| 8 | Goods sent from Northern Ireland to the EU |
| 9 | Goods brought into Northern Ireland from the EU |
The Flat Rate Scheme and the construction reverse charge both change what goes in these boxes. Each has its own page, linked below.
Deadlines and paying
The deadline to send the return is usually 1 calendar month and 7 days after the end of the period. The VAT must also reach HMRC by the same date, even when it falls on a weekend or bank holiday.
| You pay by | When it reaches HMRC |
|---|---|
| Direct Debit | Collected 3 working days after the deadline. Set it up at least 3 working days before you send the return, or the first payment will not be taken |
| Faster Payments | Usually the same or next day, including weekends and bank holidays |
| CHAPS | Usually the same working day, within your bank's cut-off times |
| Bacs | Usually 3 working days |
| Card online | Accepted on the day you pay. Personal debit cards are free; corporate cards carry a fee |
Putting a mistake right
You can correct errors from the last 4 years on your next return if the net value of the errors is £10,000 or less, or up to £50,000 as long as it is under 1% of your sales in box 6. Add the net amount to box 1 if you owe more, or to box 4 if HMRC owes you, and keep a note of what went wrong. Larger errors, and any deliberate error, have to be reported to HMRC separately.
If you are late
For periods starting on or after 1 January 2023, late returns and late payments are penalised separately.
Late returns. Each late return earns a penalty point, including a nil return. Quarterly filers reach the threshold at 4 points, monthly filers at 5 and annual filers at 2. At the threshold HMRC charges £200, and another £200 for each late return while you stay there. Sending returns on time removes points over time.
Late payment. Interest runs from the first day the VAT is overdue. Penalties come on top:
| Days overdue | Penalty |
|---|---|
| Up to 15 | None |
| 16 to 30 | 3% of what was unpaid on day 15 |
| 31 or more | 3% of what was unpaid on day 15, plus 3% of what was unpaid on day 30, plus a second penalty at 10% a year, charged daily from day 31 |
If you cannot pay in full, you can ask HMRC for a Time to Pay arrangement. GOV.UK says an agreed arrangement can mean lower or no late payment penalties. To avoid the penalty from day 16, it says to pay in full or ask by day 15. If you break the arrangement, penalties can be charged as if it never existed.
Sending a paper return when you are not exempt can lead to a penalty of up to £400. You can apply for an exemption only if it is not reasonable or practical for you to use computers, software or the internet, for example because of your age, a health condition, disability or where you live, a religious objection, or having no internet access.
What this means for you
Take a plumber whose VAT quarter runs from 1 July to 30 September 2026, with £3,000 of VAT to pay. The return and the money are both due by 7 November 2026. If they pay 20 days late, the penalty is 3% of £3,000, which is £90, plus interest. If they pay 40 days late, the first penalty is 3% at day 15 and another 3% at day 30, £180, plus a second penalty of about £8 for each 10 days from day 31, plus interest.
Steps to send your return
- Check the due date and payment date in your VAT online account.
- Make sure your software is compatible and connected to HMRC. Reconnect it if the 18-month authority has run out.
- Bring your sales and purchase records up to date for the period.
- Check the 9 boxes your software has worked out, especially box 5, the amount to pay or reclaim.
- Submit the return from the software and keep the confirmation.
- Pay by the deadline, or make sure your Direct Debit is in place.
- Check your VAT online account to see that HMRC has received the return.
Making Tax Digital for Income Tax has separate deadlines. The free MTD check shows when it starts for you, and the trades section has more on VAT.
Hold your place on the trades waitlist
We’ll email you when Trades Tax opens, with the founding offer while places last. No payment is taken.
Questions people ask
Can I still send my VAT return on the HMRC website?
Not for a normal quarterly or monthly return. Since 1 November 2022 the VAT online account cannot be used to send them. It is still used for returns after you cancel your VAT registration, by some businesses in an insolvency arrangement, and by businesses HMRC has exempted from Making Tax Digital.
Do I have to sign up for Making Tax Digital for VAT?
No. GOV.UK says all VAT-registered businesses should now be signed up, and HMRC signs up any that are left automatically. You only need software that works with it.
Can I keep my VAT records in a spreadsheet?
Yes, if you use bridging software to send the figures to HMRC. The figures must move between the spreadsheet and the bridging software by a digital link, not by retyping or copy and paste.
Do I need to send a return if I had no VAT to pay this quarter?
Yes. GOV.UK says you must send a VAT return even if you have no VAT to pay or reclaim, and a late nil return still earns a penalty point.
How long does my software's connection to HMRC last?
When you connect compatible software, you give it authority to reach your HMRC data. GOV.UK says that authority lasts 18 months, and you can check or withdraw it at any time.
Does Making Tax Digital for VAT cover my Income Tax as well?
No. Making Tax Digital for Income Tax is a separate scheme with its own sign-up and deadlines, even if you already file VAT returns through software.
Sources
- Sending a VAT Return (GOV.UK, printable guide)
- Find software that's compatible with Making Tax Digital for VAT (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 (GOV.UK, printable guide)
- Penalty points and penalties if you submit your VAT Return late (GOV.UK)
- How late payment penalties work if you pay VAT late (GOV.UK)
- Apply for an exemption from Making Tax Digital for VAT (GOV.UK)
This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.
Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.
What happens next
- Use the free Making Tax Digital checker to see your own start date and deadlines.
- See what Righto Tax for Trades does for you, and join the waitlist.
- Questions about this page? Email hello@rightotax.co.uk.