How Often Do You Need to Submit a VAT Return in the UK?

Value Added Tax (VAT) is an essential component of the UK’s tax system. If your business is VAT-registered, submitting a VAT return is a legal requirement. However, many business owners—especially those new to VAT—often ask: How often do you need to submit a VAT return in the UK? The answer depends on a variety of factors, including your business size, VAT scheme, and HMRC agreements. This article provides an in-depth guide to the VAT return submission frequency in the UK, including standard practices, exceptions, tips, and consequences of non-compliance.

What Is a VAT Return?

A VAT return is a form submitted to HMRC that shows how much VAT a business has charged on sales and how much VAT has been paid on purchases. The return calculates whether a business owes VAT to HMRC or is due a refund. Understanding VAT return submission frequency is crucial because missing deadlines can lead to penalties, interest charges, and loss of credibility with HMRC.

Standard VAT Return Submission Frequency

For most businesses in the UK, the VAT return submission frequency is quarterly. This means you must submit a VAT return every 3 months, commonly known as a VAT accounting period. Each quarter, you are required to:

Submit the VAT return form to HMRC
Pay any VAT due
Or claim back any VAT you’re owed

These quarters do not always align with calendar quarters. HMRC assigns your VAT periods when you register.

Example of Quarterly Submission:

If your VAT accounting period is:

1st January to 31st March,
You must submit your return by 7th May.

This is because VAT returns are generally due 1 month and 7 days after the end of each period. The quarterly VAT return submission frequency allows businesses to regularly manage their VAT liabilities and cash flow.

Annual VAT Accounting Scheme

Businesses with a turnover of £1.35 million or less can opt for the Annual Accounting Scheme. Under this scheme, the VAT return submission frequency changes from quarterly to annually. However, you’ll still make advance payments throughout the year, either monthly or quarterly, based on an estimate. At the end of the year, you submit one VAT return and either pay the balance or receive a refund. This scheme simplifies the process and is ideal for businesses that prefer minimal administrative tasks.

Monthly VAT Returns

While less common, some businesses opt for monthly VAT returns. This is usually chosen when:

The business regularly reclaims VAT (e.g., exporters)
Cash flow benefits from quicker VAT refunds
The business has a high volume of transactions

In this case, the VAT return submission frequency is increased to 12 times a year, offering more frequent cash flow assessments. However, monthly VAT returns involve more administrative work and must be consistently managed.

VAT Return Submission Frequency by Scheme

VAT Scheme	Submission Frequency	Suitable For
Standard VAT Scheme	Quarterly (default)	Most VAT-registered businesses
Annual Accounting Scheme	Annually	Small businesses with low to moderate turnover
Monthly VAT Returns	Monthly	High volume/reclaim-focused businesses
Flat Rate Scheme (FRS)	Usually Quarterly	Simplified accounting for small businesses

Understanding which VAT scheme suits your business helps you choose the optimal VAT return submission frequency.

How to Choose the Right Frequency for Your Business

While the default is quarterly, the right frequency depends on your cash flow, administrative capacity, and whether you are usually paying VAT or reclaiming it.

Choose Monthly VAT Returns If:

You receive VAT refunds frequently
You have the admin support to handle frequent submissions
You want more frequent reconciliation of accounts

Choose Quarterly Returns If:

You prefer a standard, manageable schedule
You have limited accounting resources
You want to balance workload and cash flow

Choose Annual VAT Return If:

Your turnover is below £1.35 million
You want to simplify reporting
You’re okay with making estimated payments

Your business goals and financial rhythm play a big role in determining your ideal VAT return submission frequency.

Changing Your VAT Return Submission Frequency

You can request to change your VAT return submission frequency by contacting HMRC or switching to a different VAT scheme. However, HMRC must approve the change, and you must meet the criteria. To change frequency:

Log in to your HMRC VAT online account
Select your VAT scheme and frequency preferences
Follow the instructions provided
Wait for confirmation from HMRC

It’s recommended to consult a tax advisor or accountant before making the change.

Importance of Meeting Deadlines

Failing to comply with your required VAT return submission frequency can result in:

Penalties and fines
Interest on unpaid VAT
Reputational damage with HMRC
Possible compliance checks or audits

It’s critical to know your deadlines and stick to your assigned VAT periods. Automated reminders, bookkeeping software, or outsourcing to professionals can help ensure timely compliance.

How MTD Affects Submission Frequency

Making Tax Digital (MTD) is HMRC’s initiative that mandates digital record-keeping and online submission for VAT. For most businesses above the VAT threshold (£90,000 as of 2024), MTD compliance is mandatory, and VAT returns must be submitted using compatible software. MTD doesn’t change your VAT return submission frequency, but it changes how you submit your returns. You must:

Keep digital records
Use MTD-compatible software
Submit returns electronically through that software

This impacts your workflow, especially if you submit monthly or quarterly returns.

Best Practices to Manage VAT Return Submission Frequency

To efficiently manage your VAT return submission frequency, follow these tips:

Automate Record-Keeping: Use accounting software to track income, expenses, and VAT liabilities.
Set Reminders: Always set calendar alerts well in advance of due dates.
Hire a Bookkeeper or Accountant: Professional help ensures accuracy and compliance.
Stay Updated with HMRC Changes: Tax rules can change—especially thresholds and filing requirements.
Review Cash Flow Regularly: Match your VAT frequency with your business’s income cycle.

Adopting these practices will make VAT management smoother and reduce the risk of missing a submission.

Conclusion

Understanding the correct VAT return submission frequency is key to staying compliant and managing your business finances efficiently. Whether you’re submitting quarterly, monthly, or annually, each option has its advantages and considerations. Evaluate your business needs, talk to a professional if needed, and stay organized. Choosing the right frequency not only helps avoid penalties but also improves your cash flow and financial clarity. If you need help managing your VAT returns or filing them accurately, professional assistance can ensure that you never miss a deadline again.

FAQs

Yes, but you must apply to HMRC and meet their eligibility criteria before they approve the change.

No, quarterly is the default, but businesses can apply for monthly or annual returns depending on their cash flow and VAT scheme.

MTD changes the way you submit your VAT returns (digitally), but not the frequency of submission.

Generally, it’s 1 month and 7 days after the end of your VAT period, but it varies depending on your assigned filing schedule.

HMRC may issue penalties, interest on unpaid VAT, and could trigger compliance checks, so timely submission is crucial.