What's new for UK VAT in 2026
The 2026/27 VAT landscape remains largely stable. The £90,000 registration threshold (increased from £85,000 in April 2024) continues to apply. Making Tax Digital (MTD) remains mandatory for all VAT-registered businesses regardless of turnover — there are no exemptions. HMRC's new penalty points system for late filing (introduced in January 2023) is now fully operational, replacing the old default surcharge regime. Businesses accumulate penalty points for late submissions, with a £200 fine triggered at the points threshold.
2026 VAT timeline: key dates to know
For businesses on standard quarterly VAT periods: returns and payments for Q4 2025 (Oct–Dec) are due by 7 February 2026. Q1 2026 (Jan–Mar) is due by 7 May 2026. Q2 2026 (Apr–Jun) is due by 7 August 2026. Q3 2026 (Jul–Sep) is due by 7 November 2026. Q4 2026 (Oct–Dec) is due by 7 February 2027. These deadlines apply to both filing and payment. Direct debit payments get an additional 3 working days.
2026 post-Brexit update: selling to the EU
UK businesses selling to EU consumers in 2026 face the same post-Brexit rules established since January 2021. Goods valued under €150 can be declared through IOSS (Import One Stop Shop) at EU entry. Digital services to EU consumers require EU VAT registration (either individual country registrations or the EU OSS). B2B services remain largely subject to the reverse charge. The UK–EU Trade and Cooperation Agreement provides zero-tariff, zero-quota access for qualifying goods, but VAT obligations remain separate.
