--- title: HMRC warns incorrect AI advice is impacting VAT returns description: HMRC warns that incorrect AI-generated VAT advice is leading to late submissions and penalties. Learn how this happens and how to avoid this error. image: https://blog.shorts.uk.com/hubfs/HMRC%20warns%20incorrect%20AI%20advice%20is%20impacting%20VAT%20returns%20(1).png --- [![Shorts_logo_White](https://blog.shorts.uk.com/hubfs/New%20Site%202018/Shorts_logo_White.svg "Shorts_logo_White")](https://www.shorts.uk.com/) [Blogs & News](https://blog.shorts.uk.com/) > [VAT](https://blog.shorts.uk.com/topic/vat) # HMRC warns incorrect AI advice is impacting VAT returns Lynne Gill - 19 May 2026 ###### Select topic - Please Select - [ Audit ](https://blog.shorts.uk.com/topic/audit) [ Business Taxes ](https://blog.shorts.uk.com/topic/business-taxes) [ Radius – R&D Tax Relief & Patent Box ](https://blog.shorts.uk.com/topic/radius-rd-tax-relief-patent-box) [ Corporate Finance ](https://blog.shorts.uk.com/topic/corporate-finance) [ GENUS Management Accounts ](https://blog.shorts.uk.com/topic/genus-management-accounts) [ VAT ](https://blog.shorts.uk.com/topic/vat) [ Private Client ](https://blog.shorts.uk.com/topic/private-client) [ Payroll ](https://blog.shorts.uk.com/topic/payroll) [ EOT ](https://blog.shorts.uk.com/topic/eot) [ International Taxes ](https://blog.shorts.uk.com/topic/international-taxes) ![featured image](https://blog.shorts.uk.com/hubfs/HMRC%20warns%20incorrect%20AI%20advice%20is%20impacting%20VAT%20returns%20(1).png) HMRC has contacted professional bodies to warn businesses that some AI-generated information on VAT returns is incorrect, causing late submissions and delayed payments. ## **How has AI caused businesses to submit VAT returns incorrectly?** A growing number of businesses have submitted [VAT returns](https://blog.shorts.uk.com/reclaiming-vat-how-it-works-and-how-to-do-it) after the due date when the 7th of the month falls on a weekend or bank holiday. The Chartered Institute of Taxation (CIOT) carried out their own research and found that some third-party websites and AI summaries wrongly suggest that VAT payments can be made after the deadline when it falls on a weekend or bank holiday. This is incorrect. ## **The correct VAT deadline** The deadline for the submission is one calendar month and 7 days after the end of the accounting period. For example, a VAT return covering the period from 1st January to 31st March must be submitted to HMRC no later than 7th May. VAT returns must be submitted and payments must reach HMRC no later than the due date **regardless of which day of the week this is**. ## **No extensions for weekends or bank holidays** A key point many businesses are getting wrong: While you can submit VAT returns on weekends and bank holidays, if that’s not possible, you should plan to submit before the deadline. Ideally, it should be no later than the last working day prior to the due date. ## **Penalties still apply** HMRC does not consider the use of 3rd party websites and AI to be a reasonable excuse for the late submission and payment of VAT returns and missed deadlines. This will incur interest and penalty points/penalties. ## **What you should do if you’ve been impacted** If your business submitted its VAT return late due to incorrect AI content, take these steps now and in the future: AI can be a helpful tool, but only if it’s using accurate, up-to-date information as its source. Blind trust in these systems can be costly, which is why Shorts’ VAT team always recommends using official HMRC guidance when it comes to deadlines in accountancy. If you're unsure whether your return complies with HMRC's guidance, Shorts offers a [free VAT return review](https://www.shorts.uk.com/vat-consultancy-planning/free-vat-return-review). If there are any areas of concern, our team will flag them with you to help you [avoid potential action from HMRC](https://blog.shorts.uk.com/vat-inspections-and-investigations).  ![author](https://blog.shorts.uk.com/hubfs/ZT_cPBSU-1-1.jpeg) #### Lynne Gill My area of expertise is land and property transactions but I have extensive knowledge of both domestic and international VAT and I love complex VAT queries. I have an Honours degree in Business Studies and a VAT legal and technical qualification from the Institute of Indirect Taxation. [View my articles](https://blog.shorts.uk.com/author/lynne-gill) Tags: [VAT](https://blog.shorts.uk.com/topic/vat), [VAT compliance](https://blog.shorts.uk.com/topic/vat-compliance) Share this on - - - [Questions? Get in touch with us](https://www.shorts.uk.com/contact/) ###### Tax Saving Guide 2026-27 Written especially for entrepreneurs and owner-managed businesses, this guide is full of planning ideas and tax risks to avoid. [ Download now ](https://info.shorts.uk.com/en-gb/tax-saving-guide) ![Tax saving guide 2026-27](https://blog.shorts.uk.com/hs-fs/hubfs/Tax%20saving%20guide%202024.jpg?width=375&height=465&name=Tax%20saving%20guide%202024.jpg) ###### Related articles ##### [The perils of ignoring VAT assessments](https://blog.shorts.uk.com/the-perils-of-ignoring-vat-assessments) ##### [MTD and VAT: Making Tax Digital in 2026](https://blog.shorts.uk.com/mtd-and-vat-making-tax-digital) ##### [Understanding VAT and the option to tax for landlords](https://blog.shorts.uk.com/vat-landlords-the-option-to-tax-property) ##### [How is VAT Calculated?](https://blog.shorts.uk.com/how-is-vat-calculated) ###### Latest articles [A case of aggressive tax avoidance: Glasgow Rangers Football Club](https://blog.shorts.uk.com/aggressive-tax-avoidance-affect-you) [What is VAT? - Complete Guide (Updated for 2025/26)](https://blog.shorts.uk.com/what-is-vat) [Ashgate Hospice Sparkle Night Walk 2026](https://blog.shorts.uk.com/ashgate-hospice-sparkle-night-walk-2026) [Stocktaking guide for UK businesses](https://blog.shorts.uk.com/stocktaking-guide-for-uk-businesses) [Supporting the Chatsworth Cascade for future generations](https://blog.shorts.uk.com/supporting-the-chatsworth-cascade-for-future-generations) [Deal of the Year win at Insider Dealmakers Awards 2026](https://blog.shorts.uk.com/deal-of-the-year-win-at-insider-dealmakers-awards-2026) [Football shirt Wednesday: Backing England in style](https://blog.shorts.uk.com/football-shirt-wednesday-backing-england-in-style) [Understanding lifetime trusts: the basics](https://blog.shorts.uk.com/understanding-lifetime-trusts-the-basics) [Close company directors face new HMRC detail requirements in 2026](https://blog.shorts.uk.com/close-company-directors-face-new-hmrc-detail-requirements-in-2026) [Shorts advise Harris Irwin Architects on successful growth funding.](https://blog.shorts.uk.com/shorts-advise-harris-irwin-architects-on-successful-growth-funding) #### About Us Use this little footer to reinforce your message about who you are and why people love working with you. And since this is a global module, you only have to edit it once to make the changes across every page it appears on. [Learn More [fa icon="long-arrow-right"]](https://blog.shorts.uk.com/hmrc-warns-incorrect-ai-advice-is-impacting-vat-returns#) #### More Links #### Contact Us [fa icon="phone"]   [fa icon="envelope"]  [yourname@company.com](mailto:yourname@company.com) [fa icon="home"]  Cedar House, 63 Napier Street, Sheffield, South Yorkshire, S11 8HN, | 2 Ashgate Road, Chesterfield, Derbyshire, S40 4AA | (0114) 2671617 / (01246) 559955 [[fa icon="facebook-square"]Facebook](https://blog.shorts.uk.com/hmrc-warns-incorrect-ai-advice-is-impacting-vat-returns#) [[fa icon="linkedin-square"]Linkedin](https://blog.shorts.uk.com/hmrc-warns-incorrect-ai-advice-is-impacting-vat-returns#) [[fa icon="twitter-square"]Twitter](https://blog.shorts.uk.com/hmrc-warns-incorrect-ai-advice-is-impacting-vat-returns#) [[fa icon="pinterest-square"]Pinterest](https://blog.shorts.uk.com/hmrc-warns-incorrect-ai-advice-is-impacting-vat-returns#) Copyright 2026 | Designed with [fa icon="heart"] by [HubSpot](https://www.hubspot.com) [[fa icon="chevron-up"]Back to top](https://blog.shorts.uk.com/hmrc-warns-incorrect-ai-advice-is-impacting-vat-returns#) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Lynne Gill", "url" : "https://blog.shorts.uk.com/author/lynne-gill" }, "dateModified" : "2026-05-19T10:15:22.154Z", "datePublished" : "2026-05-19T10:15:22.000Z", "headline" : "HMRC warns incorrect AI advice is impacting VAT returns", "image" : [ "https://blog.shorts.uk.com/hubfs/HMRC%20warns%20incorrect%20AI%20advice%20is%20impacting%20VAT%20returns%20(1).png" ], "mainEntityOfPage" : { "@id" : "https://blog.shorts.uk.com/hmrc-warns-incorrect-ai-advice-is-impacting-vat-returns", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.shorts.uk.com/hubfs/2018%20Shorts%20logo%20with%20transparent%20background%20.png" }, "name" : "Shorts" } } ```