VAT payment cycle

The standard quarterly cycle

Most VAT-registered businesses are on quarterly returns. The pattern: VAT period ends → file return + pay VAT one calendar month and seven days later.

Worked timing

• Quarter ends 31 March → return + payment due by 7 May
• Quarter ends 30 June → due by 7 August
• Quarter ends 30 September → due by 7 November
• Quarter ends 31 December → due by 7 February

Direct Debit timing

If HMRC has set up a Direct Debit, they'll collect a few working days after the deadline. So while the return must still be filed on time, the cash leaves your account a bit later. Most businesses find this useful for cash flow.

Other VAT schemes have different timings

• Annual Accounting: one return a year, due 2 months after period end, with monthly or quarterly payments on account during the year
• Monthly returns: usually for businesses in regular VAT-refund positions
• Payments on Account: required if your annual VAT bill exceeds £2.3m

Late filing and late payment are separate

Late filing uses the points-based system (1 point per late return, £200 once at threshold). Late payment uses the surcharge stack (2% at day 15, 4% at day 30, daily 4% interest from day 31). They apply independently.