Money Matters

Making Tax Digital for VAT deadlines

Your MTD for VAT Return is due one calendar month and seven days after your VAT period ends. Here are the key dates and a checklist to help you file on time.

Published 15 October, 202611 min read Share

Under Making Tax Digital (MTD) for VAT, your VAT Return is due one calendar month and seven days after the end of each VAT period, and you must file it using MTD-compatible software. The rules have applied to all VAT-registered businesses since April 2022.

Key takeaways

• Your VAT Return is due one calendar month and seven days after the end of your VAT period (the Annual Accounting Scheme has its own deadlines).
• MTD for VAT has applied to all VAT-registered businesses since April 2022, and HM Revenue and Customs (HMRC) signs up new VAT registrations automatically.
• Digital links have been mandatory since April 2021, so you can’t copy and paste between your VAT records.
• Late returns earn penalty points. The late return that takes you to your points threshold triggers a £200 penalty, and each further late return while you’re at the threshold can trigger another £200 penalty.
• MTD for Income Tax began in April 2026, while MTD for Corporation Tax was cancelled in July 2025.

In April 2022, MTD for VAT was extended to significantly more businesses.

Those who have voluntarily registered for VAT need to follow its rules, including businesses below the VAT registration threshold.

If you’re VAT-registered, you need to understand the deadlines and meet them.

Here’s what this article discusses:

What are the key MTD for VAT deadlines?

Your VAT Return and payment are usually due one calendar month and seven days after the end of your VAT period.

Item	Key date or requirement
VAT Return deadline	One calendar month and seven days after the end of your VAT period
Annual Accounting Scheme	Return normally two months after the end of an accounting period of 4 to 12 months, or one month after the end of a period shorter than four months
Payment deadline	Usually the same as the return deadline under standard VAT accounting. Annual Accounting Scheme instalments and balancing payments, and payments on account, have separate dates. If you pay by Direct Debit, HMRC collects it three working days after the deadline
MTD sign-up	Automatic when you register for VAT, unless you’re exempt
Digital links	Mandatory since April 2021 (no copying and pasting between records)
Late submission penalties	Points-based system since 1 January 2023. The late return that takes you to your threshold triggers a £200 penalty, and further late returns while you’re at the threshold can trigger further £200 penalties
Late payment penalties	From day 16 after the deadline, rising from day 31

How has Making Tax Digital been rolled out?

In stages: MTD for VAT started in April 2019 and has covered all VAT-registered businesses since April 2022, while MTD for Income Tax began in April 2026.

You should also view Sage’s MTD Hub to ensure you keep on top of key dates.

• May 2015: The Chancellor announced the “death of the annual tax return” and impending digitalisation of VAT, Income Tax and Corporation Tax within five years. Therefore, Making Tax Digital is created and plans are made to start rolling it out.
• December 2015: HMRC launched personal tax accounts, by which individual taxpayers can manage tax online, such as their PAYE codes and National Insurance records.
• April 2019: Making Tax Digital for VAT came into effect. Most businesses over the VAT threshold had to begin following the rules for their first full VAT period after this date. MTD-compatible software must be used for filing VAT Returns, and relevant VAT accounting records must be kept digitally.
• October 2019: MTD for VAT came into effect for businesses that were deferred in April 2019. This list mostly comprises larger businesses and organisations, such as group companies and public sector organisations.
• April 2021: The soft landing period came to an end. Prior to this, it was possible for those using MTD for VAT to manually copy and paste data. But after this date, the movement of data from one place to another must be both automated and digital—something known as digital linking.
• April 2022: MTD for VAT was extended to all VAT-registered businesses. This includes those that were voluntarily registered for VAT. The rules and requirements of MTD for VAT remain the same: for the first full VAT period following April 2022, any individual or business registered for VAT must use MTD-compatible software for filing VAT Returns, and relevant VAT accounting records must be kept digitally.
• January 2023: A new penalty system applies to VAT late submissions under Making Tax Digital. Each late return earns a penalty point. The late return that takes a business to its points threshold triggers a £200 penalty, and further late returns while it’s at the threshold can trigger further £200 penalties.
• July 2025: HMRC confirmed in its Transformation Roadmap that MTD for Corporation Tax won’t go ahead. Companies continue to file Corporation Tax returns under the current system.
• April 2026: Making Tax Digital for Income Tax (also known as MTD for Income Tax Self Assessment) began for sole traders and landlords with qualifying income over £50,000 a year. It’s separate from MTD for VAT and has its own rules.
• From April 2026 and April 2027: The late submission and late payment penalty system is applied to MTD for Income Tax customers in line with mandation. Extension to all other Self Assessment customers is planned, with the date to be confirmed. For those who joined in April 2026, late quarterly updates in the 2026/27 tax year don’t attract penalty points (the soft landing period).
• April 2027: MTD for Income Tax is extended to those with qualifying income over £30,000 a year.
• April 2028: MTD for Income Tax is extended to those with qualifying income over £20,000 a year.
• No earlier than April 2028: MTD for Income Tax for general partnerships (date to be confirmed).

Will the government extend MTD for Income Tax to other individuals and businesses, such as those earning below £20,000?

Or those who use Self Assessment for other things, such as declaring interest on investments, or if they have salaries over £100,000?

It’s possible, but there have been no announcements, so there are no dates yet.

However, the experience of the rollout of MTD for VAT over several years indicates this may be likely.

When is your MTD for VAT Return due?

Under standard VAT accounting, one calendar month and seven days after the end of your VAT period. The Annual Accounting Scheme is different: your return is normally two months after the end of an accounting period of 4 to 12 months, or one month after the end of a period shorter than four months.

HMRC now signs up businesses for MTD for VAT automatically when they register for VAT, unless they’re exempt (GOV.UK). If you’re not sure you’re signed up, see how to sign up for MTD for VAT.

Once you’re signed up, make sure your software is authorised to connect to HMRC. Speak to the software vendor if you have any questions on this.

If you have an accountant who handles your VAT, they can file returns on your behalf. Just ask them.

But do remember that this doesn’t remove the requirement for you to keep relevant VAT records digitally.

Because you must file VAT Returns by one calendar month and seven days after the end of your VAT period, at the latest, the due dates follow a set pattern. For example, if you file quarterly:

VAT quarter ends	Return and payment due
31 March	7 May
30 June	7 August
30 September	7 November
31 December	7 February

Monthly filers follow the same rule, so a return for April is due by 7 June. If you pay by Direct Debit, HMRC collects the payment three working days after the deadline.

These dates apply to standard VAT accounting, where the return and payment deadlines usually coincide. If you use the Annual Accounting Scheme, you pay instalments during the year and a balancing payment with your return. Businesses in the Payments on Account scheme make interim payments on separate dates too.

If you’re new to MTD for VAT software, your next VAT Return will be the first you create with it.

But don’t worry, this is usually very straightforward.

What happens if you miss an MTD for VAT deadline?

You get a penalty point for each late return, and a £200 penalty once you reach your points threshold. Paying late brings separate late payment penalties and interest.

Your penalty points threshold depends on how often you file (GOV.UK):

How often you file	Points threshold	To reset your points to zero
Annually	2	File on time for 24 months, and send any returns outstanding from the previous 24 months
Quarterly	4	File on time for 12 months, and send any returns outstanding from the previous 24 months
Monthly	5	File on time for six months, and send any returns outstanding from the previous 24 months

The late return that takes you to your threshold triggers the first £200 penalty. Each further late return while you’re at the threshold can trigger another £200 penalty.

Points below the threshold expire after about two years (GOV.UK).

If you pay late, there’s no penalty if you pay, or agree a Time to Pay arrangement, within 15 days. After that, you pay 3% of what you owed at day 15, a further 3% of what you still owe at day 30, and then a daily penalty of 10% a year from day 31 (GOV.UK). Late payment interest also applies.

HMRC does not offer general extensions for MTD for VAT deadlines. If you have a reasonable excuse (such as serious illness or a system outage), you can appeal a penalty. Time to Pay arrangements can help with paying VAT, but they don’t extend filing deadlines.

It’s worth noting that some people can apply to HMRC to be digitally excluded. This means they won’t have to deal with Making Tax Digital.

However, this exclusion is only for exceptional circumstances, and you can’t just opt into it.

You need a very good reason, such as the fact that the remoteness of your location means you can’t access the internet, or your religious beliefs prohibit you from using a computer. See HMRC’s exemption guidance.

For more detail, read HMRC MTD penalties explained.

How can you make sure you meet every MTD for VAT deadline?

Work through this checklist before each VAT period ends.

• Confirm your VAT accounting periods and filing frequency (monthly, quarterly, or annually).
• Choose and set up MTD-compatible software, and authorise it to connect to HMRC.
• Check that you’re signed up for MTD for VAT. HMRC signs up new VAT registrations automatically.
• Ensure digital links exist between all parts of your VAT accounting records (no copying and pasting).
• Schedule your VAT Return preparation to meet the one month and seven days submission deadline.
• Keep track of your penalty points, and pay on time to avoid late payment penalties.
• Keep your VAT records digitally for at least six years.

Final thoughts on MTD deadlines

Making Tax Digital has arguably had a difficult gestation, as the revised deadlines demonstrate.

But it’s transforming the way VAT-registered businesses handle their accounting for the better.

MTD gives you better insight into your accounting, so you can take control of cash flow and forecasting.

MTD for VAT deadlines: FAQs

Is Making Tax Digital just for VAT?

No. MTD for Income Tax began in April 2026 for sole traders and landlords with qualifying income over £50,000, and extends to those over £30,000 in April 2027 and £20,000 in April 2028. MTD for Corporation Tax was planned, but HMRC cancelled it in July 2025.

Keep an eye on Sage’s MTD Hub for an up-to-date listing of all the current MTD deadlines.

Who needs to register for Making Tax Digital for VAT?

Since April 2022, virtually all individuals and businesses that are registered for VAT need to follow the MTD for VAT rules.

This includes those that are voluntarily registered for VAT. HMRC signs up new VAT registrations automatically, unless they’re exempt.

Prior to April 2022, only businesses that were over the VAT threshold needed to register for MTD for VAT (although voluntary registration was possible).

If you’re in any doubt, see the separate article about MTD thresholds.

What was the soft landing period for MTD for VAT?

Back in 2019, the government announced that it would let businesses keep using copy and paste to move data from one place to another without contravening the Making Tax Digital legislation.

Under the MTD legislation, this is not allowed. It states that the data must move both automatically and digitally. After all, that’s one of the reasons MTD was created.

The soft landing period ended in April 2021, and there are no signs that HMRC is going to allow a second soft landing period for businesses switching to MTD for VAT now.

Therefore, businesses starting using MTD for VAT now need to know the digital linking rules from day one.

Has Making Tax Digital for VAT been postponed?

No. Since April 2022, MTD for VAT has applied to all VAT-registered businesses.

MTD for Income Tax was postponed several times. It was first planned for 2018, then April 2023, then April 2024, before starting in April 2026.

Do I need to sign up for MTD for VAT?

Usually not, because HMRC now signs up businesses automatically when they register for VAT, and it has also signed up the remaining VAT-registered businesses. If your software fails, contact your software provider and HMRC as soon as you can. Businesses that are exempt from MTD file in a different way, and the final VAT Return after deregistration is normally submitted through the VAT online account. A late return may result in a penalty point, subject to some exclusions, and you can appeal if you have a reasonable excuse.

Do deadline dates differ by business type?

No. The deadline depends on your VAT period and filing frequency, not whether you’re a sole trader, partnership, or limited company. Under standard VAT accounting, returns are due one month and seven days after the VAT period ends. Under the Annual Accounting Scheme, the return is normally two months after the end of an accounting period of 4 to 12 months, or one month after the end of a period shorter than four months.

Editor’s note: This article was first published in February 2022 and has been updated for relevance.

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