No next working day extension for VAT returns

Hillier Hopkins LLP

Chartered Accountants & Tax Advisers

Call +44 (0)330 024 3200 and discover how we can help you.

There is a misconception doing the rounds online that if your VAT return deadline falls on a weekend, you can submit it on the next working day and still be on time.

That is simply wrong.

For most VAT-registered businesses, the deadline for filing a VAT return and making payment is one calendar month and seven days after the end of the VAT period, and that deadline does not move just because it happens to fall on a Saturday, Sunday or bank holiday. This is not a new rule, and it is not open to interpretation. It has always been the case.

Unfortunately, some third-party websites and online summaries have suggested otherwise, which risks giving businesses and agents a false sense of security. If that advice is followed, the return may be late, payment may be late, and penalties or interest may follow. It is therefore important to be clear: if the due date lands on a non-working day, the due date is still the due date.

What the VAT deadline really means

HMRC’s guidance is clear that the standard online deadline is one calendar month and seven days after the end of the accounting period, with the same date applying to payment in most cases. Recent commentary from professional bodies has also highlighted that there is no automatic extension where that date falls on a weekend or bank holiday. In other words, a deadline of Sunday 7 June is still Sunday 7 June. It does not become Monday 8 June simply because that is the next business day.

Businesses can still submit online at weekends and, depending on the payment method, funds may also be able to reach HMRC outside normal banking hours. If a business cannot file or ensure cleared payment on the due date itself, it should work backwards and act earlier, not later. This is especially important for businesses that leave compliance to the last minute. VAT deadlines are set by law, and casual online advice is no substitute for checking the actual position.

Why businesses and advisers need to get this right

Relying on the wrong deadline can have avoidable consequences. Since the introduction of the VAT penalty points regime, late submissions can lead to points being accrued and, once the relevant threshold is reached, financial penalties can apply. Separate charges may also arise for late payment. Even where the amount involved is modest, repeated errors can create unnecessary cost, administration and stress. For advisers, there is also a professional responsibility to correct misinformation where it appears. If a client, colleague or online source suggests that a VAT return can be filed on the next working day when the deadline falls on a weekend, that should be challenged immediately.

The safer message is straightforward: treat the published due date as fixed and, where necessary, file and pay before it. In practice, this means planning ahead, allowing enough time for authorisation and payment clearance, and avoiding assumptions based on how other deadlines may work. A simple misunderstanding can quickly become a compliance issue, so a cautious and informed approach is always best.

If you are unsure about your VAT filing dates, or want to review your VAT processes to avoid unnecessary penalties, please get in touch with the Hillier Hopkins team. We can help you confirm the correct deadlines, improve your compliance procedures and keep your business on track.

Do you need extra information?

Graeme Fox - Senior Tax Manager at Hillier Hopkins

Graeme has worked in both the accounting and tax sectors for over 15 years and has a particular focus on the issues affecting owner manager businesses. He has developed a close working relationship with his clients to see them continue to grow and prosper.

Contact Graeme at graeme.fox@hhllp.co.uk or on +44 (0)1923 634 243

Watford