Ever had that sinking feeling when you realise a deadline has sneaked up on you? With VAT returns it can come with extra headaches like penalties, interest and mountains of admin from HMRC. 

But the trick to avoiding all that is surprisingly simple: know your dates, plan ahead and let the right tools (or an accountant) take the stress out of filing.

In this guide you’ll discover how VAT quarters work in 2025/26, how to nail your filing and payment schedule, and top tips to make sure the deadlines never catch you out again. Let’s start with a refresher.

What is a VAT return and why do quarters matter?

A VAT return is the report you submit to HMRC showing the VAT you’ve charged your customers (output tax) and the VAT you’ve paid on your business costs (input tax). The difference between the two tells you whether you owe money to HMRC or you’re due a refund.

If you’re registered for VAT, most of the time you’ll file every three months. These three-month stretches are what we call your VAT quarters. In practice, they become part of your business rhythm. Once you know which block you’re working in each time, you can plan around it rather than be surprised when the deadline lands.

So why do the quarters matter? Because each quarter has a clear end date, and after that end date your return (and any payment) is due. Miss the deadline and you’re in penalty territory.

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How HMRC sets your VAT quarter dates

When you register for VAT HMRC assigns you to one of three stagger groups. These groups determine the end-dates of your VAT quarters. The aim is to spread the load across the year rather than everyone filing at the same time.

Here are the standard stagger groups:

• Stagger 1: quarter-ends in March, June, September, December
  
  
• Stagger 2: quarter-ends in April, July, October, January
  
  
• Stagger 3: quarter-ends in May, August, November, February
  
  

Your business will fall into one of these when you register. The good news is once you’re set you stay in that group from year to year unless you ask HMRC to change it. The figure below shows how it works in practice for the 2025/26 period.
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Example of quarter dates for each group

Check your VAT online account or ask your accountant to confirm which group you belong to. That way you’ll know exactly when each quarter finishes.
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When are returns and payments due?

This is the key bit. The filing and payment deadline for a standard quarterly VAT return is one calendar month and seven days after the end of the period.

Here’s how that plays out:

Return and payment deadlines for 2025/26 examples

So if your quarter ends on 30 June, you know your VAT return and payment are due by 7 August. Simple rule, once you’ve got your end date.

If we’re handling your VAT return, we would ask that you submit by the end of the following month post quarter, giving us 7 days to submit your return in time. 

What if the deadline falls on a weekend or bank holiday?

Good question. If the due date lands on a weekend or bank holiday, you should treat the next working day as your practical deadline. That means you must submit your return and make sure your VAT payment is processed by then.

If you’re paying by direct debit HMRC will collect on the next working day as long as the return is submitted on time. If you pay manually, by bank transfer or via Bacs/Faster Payments you must ensure the funds reach HMRC by the working day deadline to avoid penalty risk.
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What about monthly or annual VAT schemes?

Most businesses file quarterly, but there are other options that may suit depending on your circumstances.

Monthly filing

Businesses that frequently reclaim VAT often choose monthly returns. With monthly filing you still follow the “one month plus seven days” rule, but you have 12 returns and payments per year instead of four. This can help with cash flow and give you more frequent visibility.

Annual Accounting Scheme

Under this scheme your business submits one VAT return per year instead of four. You’ll make advance payments during the year, then settle up with a single balancing payment and return two months after your accounting year end. This is often simpler on the paperwork side, but you’ll want steady turnover and predictable VAT bills for it to be a good fit.

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What happens if you miss your VAT deadline?

If your VAT return is late, you’re entering a penalty regime managed by HMRC. From 1 January 2023 HMRC moved to a points-based system for late VAT returns. 

The rules are:

• Every late submission earns you a penalty point.
  
  
• Once you reach your penalty threshold you receive a £200 fine.
  
  
• More late submissions lead to further £200 fines each time.
  
  
• Example thresholds: quarterly filers reach a threshold after 4 penalty points.
  
  
• On top of that you’ll face late payment interest: HMRC charges interest on overdue VAT bills based on the Bank of England base rate plus 2.5 % (so the actual rate changes as the bank rate moves).

The most secure way to avoid this area altogether is to file and pay on time, every time. If you’re even slightly unsure, set reminders or ask for professional help.
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Pro-tips for keeping VAT quarters and deadlines stress-free

Avoiding VAT panic starts with good habits. Here are some practical ways to make your life easier:

1. Update your bookkeeping weekly or fortnightly. 

The closer your bookkeeping records are to real time, the fewer surprises at the end of each quarter.

2. Use cloud accounting software that shows your VAT deadlines. 

Choose accounting software (like Crunch!) that displays your upcoming quarter end, filing date and payment date, and sends you reminders.

3. Scan or photograph receipts as you get them. 

Digital records save time and help satisfy Making Tax Digital requirements.

4. Set aside VAT money regularly. 

If you treat output VAT as money you set aside, you’re less likely to feel squeezed when payment becomes due.

5. Don’t leave payment until the last day. 

Transfer early enough so that bank processing, weekends or holidays don’t cause delays.

6. Consider working with an accountant who handles VAT for you. 

That might mean they prepare your VAT return, notify you for approval and file it with HMRC on your behalf. Let someone else worry about the deadline while you focus on the business.

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Change your VAT stagger group: Is it an option?

Yes, you can ask HMRC to change your stagger group so that your quarter-end dates better align with your financial year or trading cycle. 

But keep in mind:

• HMRC will only allow changes if there is a clear business reason.
  
  
• You normally must ask at the end of a VAT period.
  
  
• A change may affect your comparison data and historical quarters.
  
  
• Speak to your accountant before asking for a change, it may be better simply to tighten your process rather than shifting the dates.
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Why VAT quarters matter for more than just compliance

Understanding when your VAT Return is due does more than keep you penalty-free. It gives you a handle on your cash flow, budgeting and financial planning. 

If you know each quarter’s end date, you can:

• Plan big purchases so they fall in the most tax-efficient quarter
  
  
• Avoid surprise VAT payments by putting money aside well in advance
  
  
• Better align your trading cycles with quarterly obligations
  
  
• Remove the “urgent panic” feeling every time a quarter end is near
  
  

When VAT deadlines are regular and expected they become part of your business rhythm rather than an emergency sprint.

Take the stress out of VAT quarters with Crunch

VAT quarters and deadlines don’t have to be stressful. Once you know your stagger group, understand when each quarter ends, and follow the one-month-plus-seven-day rule for filing and payment, the process becomes much easier to manage.

With Crunch, you don’t have to worry about keeping track of dates or submitting returns on time. Our team can manage your VAT quarters for you, help you with bookkeeping tips, and make sure every return is filed accurately and on time. 

That means you can focus on running your business while we handle the VAT. Let us take the stress out of deadlines so every quarter runs smoothly.

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