VAT: Did your quarter end on 31 August? You have until 7 October.

For many businesses in the UK, VAT returns are a quarterly obligation. If your VAT quarter ended on 31 August, this means you have until 7 October to submit your VAT return and pay the tax due. It sounds simple, but in practice, one missed deadline or VAT error can result in a penalty or VAT penalty points from HMRC.

Check out our short guide to VAT in the UK, where we explain step by step how to prepare for filing your return, how the MTD VAT system works, and how to avoid the most common mistakes.

How do VAT deadlines work in the UK?

In order to correctly account for VAT in the UK, it is important to understand how VAT deadlines work. Every VAT-registered business in the UK files returns with HMRC – usually quarterly.

The rule is simple: the deadline for submitting your VAT return and paying the tax is one month and seven days after the end of the accounting period. This means that if your VAT quarter ended on 31 August, you have until 7 October to submit and pay everything.

However, it is not enough to simply submit the return by the specified date – HMRC requires that the VAT payment be received by the same date. Even a one-day delay can lead to interest or penalties under the new VAT penalty points system.  It is worth remembering that knowing the rules and deadlines is the foundation for avoiding stress and costly mistakes.

For companies with monthly VAT returns or the ‘Annual Accounting Scheme’, the same rule applies – the payment deadline is 1 month and 7 days after the end of the accounting period.

What do you need to do by 7 October?

If your VAT quarter ended on 31 August, you have several key obligations to fulfil before 7 October.

Firstly, prepare all your sales and purchase data, such as invoices and other documents that affect the amount of VAT owe or can reclaim. Make sure your accounting software complies with MTD for VAT (Making Tax Digital) requirements – a system that requires electronic data transfer to HMRC.

If you are unsure whether your software (e.g. QuickBooks, Xero, FreeAgent) meets MTD requirements, check the list of approved software on GOV.UK.

Then submit your VAT return online – you can file directly through your accounting sofwtare or via your HMRC online account. Finally, pay the amount due. You can make a manual transfer or set up a VAT direct debit, which is an automatic payment collected by HMRC.

Please note: the payment must be reach HMRC by 7 October, not just sent on that date. If your bank processes payments in standard mode, do this at least one day in advance. This is the easiest way to avoid stress and unpleasant consequences – and you can repeat the well-planned process every quarter.

Learn about the most common mistakes and find out how to avoid them.

Not every VAT error is due to a lack of knowledge – it is often just haste. One common problem is failure to submit a return when the company has not made any sales in a given quarter. Remember: even then, you must submit a ‘zero’ return.

Another common problem is setting up Direct Debit VAT too late. The system needs a few days to activate, so if you do it just before the deadline, the payment may not be collected on time. Equally dangerous are incorrect sales or purchase data – incorrect net values, wrong VAT rates or omitted invoices.

Pro tip: always maintain a digital link between your invoices and VAT return. This is a requirement of the MTD VAT system and the basis of any HMRC audit. If you are unsure whether your data is correct, ask an accountant to review it or use a VAT checklist to help you avoid mistakes step by step.

If you want to use direct debit VAT, set it up at least 5 working days before the payment deadline – HMRC needs time to verify your account.

What should you do if you make a mistake?

Sometimes, despite your best efforts, a VAT error may appear in your return. Fortunately, HMRC allows you to correct VAT, provided that the error does not exceed certain thresholds (currently £10,000 or 1% of your turnover, whichever is greater). In this case, you can correct the data in your next return.

Even if the error is small, keep an accounting note (VAT error note) describing how it was corrected – this will facilitate any audits.

If the error is more significant, it must be reported separately using the VAT652 form. Why is this so important? Deliberately underestimating liabilities may be treated as a non-compliance. It is worth remembering that a late or incorrect return may result in penalties and interest, so it is always best to act as quickly as possible.

In practice: many entrepreneurs use the services of accounting firms, such as Essence Accounting, to ensure that their returns are prepared correctly and submitted on time. Professional support not only saves time, but also guarantees peace of mind.

Take advantage of the help of Essence Accounting experts

If your VAT quarter ended on 31 August, remember that you have until 7 October to submit your VAT return and pay the tax due. Make sure you have all the necessary data, comply with MTD VAT rules, keep track of deadlines and avoid mistakes that could cost you penalty points under the HMRC’s system.

If you want to be sure that you do everything on time, download our VAT checklist and check step by step whether your return is ready. Essence Accounting supports entrepreneurs in the UK in error-free UK VAT accounting – let us help your company too.

VAT mini checklist

Before 7 October, make sure you have done everything you need to do:

1. Data and invoices

• Export sales and purchases from your accounting software (CSV/PDF).
• Check that the VAT dates cover the correct period and that all credit notes are included.

2. Transaction verification

• Check that you have not exceeded the EC Sales thresholds and that reverse charge has been applied correctly (if applicable).
• Check the exchange rates on invoices in EUR/USD.

3. Declaration and payment

• Submit your VAT return online (MTD VAT) and check the HMRC confirmation.
• Decide how you will pay your VAT – direct debit VAT or bank transfer.
• Make a note in your calendar of the date of collection or transfer (no later than 7 October).