What happens if I submit my VAT return late?

Since 2023, VAT late submission uses a points-based penalty system: each late return earns a penalty point, and once you hit a threshold (usually 4 points for quarterly filers) you get a £200 fine, with a further £200 for each subsequent late submission. Late payment penalties are separate and are based on how many days late the payment is, with interest also charged on the outstanding amount. If you know you're going to struggle to pay, contact HMRC as early as possible, as a Time to Pay arrangement may help you avoid harsher penalties.