HMRC power to extend deadline for submission of final VAT return

The Value Added Tax (Amendment) Regulations SI 2025/578 address an administrative inflexibility by providing HMRC with the power to extend by direction the length of the period a person has available to make their final return when becoming de-registered from VAT.

There is said to be no change to the current policy as it is current practice to extend the deadline a business has to submit its final return for a reasonable period under an administrative concession. The legislative change provides a regulatory basis for the discretionary extension of the time limit for a final return where necessary and prevent the automatic issuing of inappropriate penalty and interest liability notices.

The amendment has effect in relation to a person who ceases to be liable or entitled to be registered for VAT on or after 14 June 2025.