Free tool

Which VAT changes affect you?

Based on GOV.UK and HMRC guidance, November 2026.

The main VAT changes, in date order

FromChangeWho it affects
1 January 2023Penalty points for late VAT returns, and new late payment penaltiesAll VAT-registered businesses
1 April 2024Registration threshold £90,000, deregistration threshold £88,000Businesses near the thresholds
1 January 2025VAT at 20% on private school fees and boardingPrivate schools and parents
April 2025Late payment penalties rose to 3% at day 15, 3% at day 30, and 10% a year from day 31Businesses that pay late
6 April 2026Making Tax Digital for Income Tax for qualifying income over £50,000, then £30,000 in 2027 and £20,000 in 2028Sole traders and landlords
1 April 2029VAT invoices must be e-invoicesVAT-registered businesses issuing VAT invoices

What has not changed

  • The VAT rates: 20% standard, 5% reduced and 0% zero rate.
  • The VAT return: nine boxes, due 1 calendar month and 7 days after each period.
  • Making Tax Digital for VAT, which has applied to every VAT-registered business since April 2022.

The Flat Rate Scheme

  • You can join if your VAT taxable turnover is £150,000 or less, excluding VAT.
  • You must leave if your turnover goes over £230,000, including VAT.
  • Limited cost businesses, whose goods cost less than 2% of turnover or less than £1,000 a year, pay 16.5%, which often removes the benefit.

See flat rate vs standard VAT.

What to do now

  1. Check your rolling 12-month turnover against £90,000 at the end of every month.
  2. Know your VAT deadlines and file on time, as points add up to a £200 penalty.
  3. Pay within 15 days of the deadline to avoid late payment penalties.
  4. If you are a sole trader or landlord, check when MTD for Income Tax applies to you.
  5. Ask your invoicing software provider how it will support e-invoicing by 2029.

For your own deadlines, see the VAT deadline calendar.

Stay on top of every deadline, from £5 a month

Swift VAT Pro reads your VAT periods from HMRC and emails you 4 days and 3 days before each due date.

  1. Connect to HMRC on HMRC's own page with your Government Gateway sign-in. We never see that password.
  2. See your VAT periods, due dates, amounts owed and payments, read from HMRC.
  3. Upload your nine box totals as a CSV. Box 3 and Box 5 are worked out and every box is checked.
  4. Submit and keep HMRC's receipt. Reminder emails arrive before each due date.
Start your 7-day free trialSee how it works

No card needed · From £5 a month · Plans for up to 100 businesses · Filing through HMRC's MTD service since 2019

Final thoughts

Most recent VAT changes are about thresholds, penalties and digital reporting rather than the rates themselves. Keep your records digital, watch the threshold, and file and pay on time.

Disclaimer: This guide gives general information, not advice for your business. Rules change, so check GOV.UK for the latest position.

Frequently asked questions

Checked against GOV.UK guidance on VAT registration, penalty points, late payment penalties, private school fees, the Flat Rate Scheme and MTD for Income Tax. November 2026.

What is the VAT registration threshold?
£90,000 of VAT taxable turnover in a rolling 12 months, since 1 April 2024. The deregistration threshold is £88,000.

When did VAT penalty points start?
For VAT periods from 1 January 2023. Each late return earns a point, with a £200 penalty at the threshold.

What are the current VAT late payment penalties?
For VAT due from April 2025: 3% of what is unpaid at day 15, another 3% at day 30, then 10% a year from day 31.

Is VAT charged on private school fees?
Yes. From 1 January 2025, education and boarding provided by private schools for a charge is standard-rated at 20%.

When does e-invoicing become mandatory?
From 1 April 2029, VAT invoices must be issued as e-invoices.

Stay on top of every deadline, from £5 a month.

Swift VAT Pro files your return to HMRC from the spreadsheet you already keep. From £5 a month.

Start 7-day free trial See which VAT changes affect you

No card needed · 2,900+ VAT returns filed since 2019