What happens if you miss a VAT deadline

The VAT filing and payment deadline is one month and seven days after each quarter-end. Missing it triggers the following consequences:

Late payment penalties

3% of unpaid VAT if still outstanding after 15 days
Additional 3% of unpaid VAT if still outstanding after 30 days
A daily rate equivalent to a 10% annual rate beyond 30 days, plus interest at the Bank of England base rate plus 4%

Points-based system

HMRC also operates a points-based penalty system for persistent late filing. Each late submission earns a penalty point. Once you reach the threshold (4 points for quarterly filers), you receive a fixed £200 fine plus £200 for each subsequent late filing until you reach a period of compliance.

How to avoid it

Setting up a VAT direct debit through your HMRC account eliminates the risk of a missed payment. We recommend this to all of our customers. Contact us immediately if you cannot pay a VAT bill on time. A Time to Pay arrangement is far better than missing the deadline.

💡 Good to know: We submit your VAT return well before the deadline and confirm the amount due. Paying on the day you approve the return, rather than waiting until the deadline, is the simplest way to ensure you are never late.

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