Incorrect advice provided by Artificial Intelligence (AI) and third-party websites is contributing to a growing trend of late VAT return filing and payment. HMRC are reminding agents and taxpayers that there is no deadline extension if the due date falls on a bank holiday or weekend.
HMRC have noted a trend of VAT returns being submitted late when the due date, usually the seventh of the month, falls on a weekend or bank holiday.
- It appears that taxpayers and agents are relying on incorrect information provided by Artificial Intelligence (AI) and third-party websites.
The due dates for filing VAT returns and making payments are fixed in law. Missing them can result in interest and Penalties.
VAT return filing
HMRC are reminding agents and taxpayers:
- There is no extension to the statutory due dates when they fall on weekends or bank holidays.
- VAT returns can be submitted at weekends or on bank holidays. Where a business cannot do that, then the return should be submitted by the last working day before the due date.
HMRC are also recommending that agents check their external guidance or website content to make sure it does not suggest that VAT returns can be submitted after the due date.
VAT return payments
When the due date for a VAT return payment falls on a weekend or bank holiday, payment must clear into HMRC's bank account by the working day before the due date, unless a taxpayer's bank allows faster payments on weekends and bank holidays.
- The Chartered Institute of Taxation (CIOT) have noted that currently only HMRC internal guidance specifically confirms this point. They have recommended that HMRC amend taxpayer guidance to provide additional clarity.
HMRC's next Agent Update will also raise awareness of this issue.
Useful guides on this topic
Starting in business: VAT
One of the first decisions to make when starting a business is whether you should register for VAT. Am I running a business for VAT purposes and if so, when do I register?
Making Tax Digital: VAT (subscriber guide)
What is Making Tax Digital for VAT? What is VAT 'functional compatible' software? What do you need to do to report your VAT? Are there penalties for making mistakes?
Penalties (VAT)
When do penalties apply for VAT? What penalties are charged and how can they be mitigated?
VAT: What's new 2026-27?
What's new in VAT for 2026-27? What are the recent cases? What policy changes have HMRC announced?
External link