VAT deadlines have a habit of creeping up. 

Whether you handle VAT yourself or work with an accountant, use this practical guide to stay prepared and compliant, avoiding last-minute stress, penalties, or surprises.[1] 

Before your next VAT deadline, make sure you have: 

• Confirmed your filing and payment deadline 
• Reconciled your sales, purchases and bank records 
• Reviewed your VAT scheme 
• Checked what VAT you can reclaim 
• Estimated what you owe 
• Set funds aside for payment 
• Confirmed your submission is MTD-compliant 

Confirm our key dates 

For most UK businesses, the VAT return deadline is: 

1 calendar month + 7 days after your VAT period ends.[2]

For example: If your quarter ends 31 March → your deadline is 7 May. 

Before you do anything else: 

• Log into your HMRC Business Tax Account 
• Confirm your exact filing deadline 
• Confirm your payment deadline 
• Set 3 reminders (2 weeks before, 1 week before, 2 days before) 

Important:Payments must reach HMRC by the deadline, so ensure you build in time for payments to clear.[2] 

Sense-check your VAT setup 

Your VAT scheme affects when you pay, what you reclaim, and how VAT is calculated.[3]

Check: 

• Are you on Standard VAT Accounting? 
• Flat Rate Scheme? 
• Cash Accounting Scheme? 

Ask yourself:  

• Has your turnover increased recently? 
• Are customers paying you later than before? 
• Is admin becoming heavier? 

If your business has grown or changed, a quick review with your accountant could ease admin or improve cash flow. 

HMRC guide to VAT schemes: www.gov.uk/how-vat-works/vat-schemes 

Approaching the VAT hreshold? 

The current UK VAT registration threshold is £90,000 (2026).[4] 

Check 

• Have you exceeded £90,000 in the last 12 months? 
• Do you expect to exceed it in the next 30 days? 
• Is your growth accelerating? 

If you cross the threshold, you usually need to register within 30 days of the end of the month you exceeded it.[4]

Acting quickly avoids penalties.[1]

Monitoring turnover monthly can prevent surprises. 

VAT registration guidance: www.gov.uk/register-for-vat 

This is where most stress builds  and where small checks make a big difference.

Reconcile your records

Before filing, confirm:

• Sales invoices issued and recorded
• Refunds and credit notes reflected correctly
• Purchase invoices logged, including missing supplier invoices
• Bank accounts reconciled
• Late payments recorded
• Expenses categorised correctly
• Payroll records up to date
• Cash payments recorded
• Mileage logs completed, if relevant

Why this matters: 30 minutes of reconciliation now can prevent hours of correction later – and reduce the risk of HMRC queries or penalties.

Review what you can reclaim

Many businesses can end up overpaying VAT simply because expenses aren’t reviewed carefully.

Subject to HMRC rules, you may be able to reclaim VAT on:

• Business travel, including train fares, parking and accommodation
• Equipment and office supplies
• Software subscriptions
• Marketing and advertising
• Professional fees
• Bad debt, if eligible

Before filing:

• Scan your expense categories for miscoded items
• Check for receipts not yet uploaded
• Confirm supplier invoices include valid VAT details

A quick check now could put money back into your business. Even small, missed items can add up over time, so it’s worth reviewing before you submit.

What VAT you can reclaim

Estimate your VAT position early

Don’t wait until the final week to find out what you owe.

Before filing:

• Run a draft VAT calculation
• Compare it to last quarter
• Ask: Is this higher than expected?

If the number feels uncomfortable, you now have time to plan – instead of reacting days before the deadline.

Confirm Making Tax Digital (MTD) compliance

Most VAT-registered businesses must:

• Use MTD-compatible software
• Keep digital records
• Ensure digital links from records to submission
• Confirm your accountant, if used, has access

Testing your submission process before the deadline reduces risk.

Final pre-submission checklist

Before clicking submit:

• Records fully reconciled
• VAT correctly calculated
• Reclaims double-checked
• Funds available for payment
• Deadline diarised
• Accountant review complete, if applicable

Now you’re ready to file.

Plan for the payment

Even profitable businesses feel pressure at VAT time – often because payments fall at awkward points in the trading cycle.

Forward planning makes this manageable.

If funds are available

• Move VAT funds into a separate account
• Confirm payment method
• Check clearance times
• Schedule payment in advance

Tip: Some businesses move the VAT portion of sales into a separate pot weekly. This can significantly reduce end-of-quarter pressure.

If cash flow feels tight

If your VAT bill is likely to put pressure on working capital:

• Review your upcoming outgoings, such as rent, payroll and suppliers
• Check for seasonal dips in revenue
• Consider adjusting supplier payment timing
• Review short-term funding options

VAT payments can create temporary cash flow pressure, particularly during periods of growth or seasonal fluctuation.

At Liberis, we support thousands of UK businesses and understand that tax periods can create temporary working capital gaps.

If a VAT payment creates a squeeze, flexible funding could help you stay on track without disrupting operations.

Learn more

Official guidance

• HMRC VAT overview
• VAT returns and payments
• Making Tax Digital

Practical small business resources

• British Chambers of Commerce - VAT guidance
• Federation of Small Businesses - tax support

References

1. https://www.gov.uk/submit-vat-return/late-returns-and-payment
2. https://www.gov.uk/submit-vat-return
3. https://www.gov.uk/how-vat-works/vat-schemes
4. https://www.gov.uk/register-for-vat
5. https://www.gov.uk/charge-reclaim-record-vat
6. https://www.gov.uk/guidance/making-tax-digital-for-vat