Businesses are being reminded to check VAT filing deadlines carefully after HM Revenue & Customs (HMRC) reported an increase in late VAT returns and payments linked to incorrect information from Artificial Intelligence (AI) tools and other online sources.
As more business owners turn to AI-powered assistants and internet searches for guidance, there is a growing risk of relying on information that may be incomplete, outdated or simply incorrect. One area where this is causing problems is the timing of VAT return submissions and payments.
VAT Deadlines Still Apply on Weekends and Bank Holidays
HMRC has emphasised that there is no automatic extension to VAT filing or payment deadlines when the due date falls on a weekend or bank holiday.
Many businesses mistakenly believe that if a VAT deadline falls on a non-working day, they can submit their return or make payment on the next working day. However, this is not the case.
HMRC’s online systems remain available for VAT return submissions on weekends and bank holidays. If a business is unable to file on the actual due date, the return should be submitted by the last working day before the deadline.
HMRC does not accept weekends or bank holidays as a valid reason for late submission.
Payment Deadlines Are Equally Important
The same principle applies to VAT payments.
Where a payment deadline falls on a weekend or bank holiday, funds must normally reach HMRC’s bank account by the due date. Depending on your bank’s processing arrangements, this may mean making the payment on the preceding working day to ensure it clears in time.
Businesses should check their banking arrangements carefully, particularly when using methods that may not process payments over weekends or public holidays.
Late Filing and Payment Can Be Costly
Missing a VAT deadline can result in interest charges and penalties, adding unnecessary costs to your business.
With VAT obligations becoming increasingly digital, it is important to have reliable systems in place to track filing and payment dates. Calendar reminders, accounting software alerts and professional support can all help reduce the risk of missed deadlines.
Don’t Rely Solely on AI for Tax Advice
AI tools can be useful for general business information, but they should not be relied upon as a substitute for professional tax advice. Tax legislation and HMRC procedures are subject to change, and generic online guidance may not reflect the latest rules or your specific circumstances.
When it comes to meeting tax obligations, obtaining advice from a qualified professional can help ensure you remain compliant and avoid costly mistakes.
Need Help with VAT?
If you need assistance with VAT returns, payment deadlines or any other aspect of VAT compliance, our team is here to help. We can provide practical advice and support to ensure your obligations are met accurately and on time, giving you one less thing to worry about as you focus on running your business.
e: office@londonaccountants.co t: 0203 137 9791
Kind Regards,
The Team at London Accountants
