When is VAT due?

As a newly VAT registered business you may find yourself asking, “When is my VAT due?” Understanding your VAT due date is essential to ensure compliance with HMRC regulations and avoid penalties. This post can provide some clarity on VAT due dates and offer tips to help you manage your VAT obligations effectively.

VAT Due Date Basics

Your VAT return due date will depend on several factors, these include your VAT return period and the way you choose to file your return. In most cases, it is required for businesses to submit their VAT returns quarterly, some may choose to submit them on a monthly or annual basis, depending upon their turnover.

  1. Quarterly Filings: the due date for payment and submission of the VAT return on a quarterly basis, every three months, is usually one calendar month and seven days after the end of the VAT accounting period.

For example, if your VAT accounting period ends on March 31st, your VAT return and payment are due by May 7th.

  1. Monthly Filings: The same goes for monthly filings, after the VAT accounting period, each month, it is due after one calendar month and seven calendar days.

For example, if your VAT accounting period end on January 31st, your VAT return and payment are due by March 7th.

  1. Annual Filings: Businesses with an annual turnover below the VAT threshold, (£1.35 Million), may be eligible to file VAT returns annually. In such cases, the due date for submission and payment is generally two calendar months and seven days after the end of the accounting period.

Tips for Managing VAT Obligations

  1. Maintain Accurate Records: Keep a hold of your business transactions, these are records like invoices, receipts, payment confirmations, credit notes, credit statements, banks statements. The use of accounting software, such as QuickBooks, helps ensure everything is up to date and recorded accurately.
  2. Set Reminders: Missing VAT deadlines can result in fines and penalties. Set up reminders well in advance of your VAT due dates to avoid late submissions.
  3. Monitor Cash Flow: VAT payments can impact your business cash flow, especially if you have seasonal fluctuations in revenue. Think about previous VAT bills and how much you will expect to be paying the next VAT period and then budget for this to avoid financial strain on your business. Consider setting aside funds in a separate account specifically for VAT obligations.
  4. Seek Professional Guidance: VAT regulations can be complex, and it’s easy to make errors without proper expertise. Consider seeking guidance from a qualified accountant or tax advisor to ensure compliance with HMRC rules and maximise opportunities for VAT reclaim and relief.

If you would like some assistance or advice on your Limited Company contact us today!

If you have specific questions or need personalised assistance with your VAT returns, please get in touch with us here at PJCO. Book a free discovery call by clicking the link below!

Please get in touch on 01273 441187 or book a discovery call with one of our expert accountants. 

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