Pay VAT

How Do You Pay VAT to HMRC?

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How do you pay VAT to HMRC 

If you have VAT register business. It is your responsibility to make sure your VAT return will submit and pay HMRC VAT on time. For this reason, it is essential you understand the basics of how to make payments to avoid any unexpected surprises or late pay VAT bill.

Pay VAT to HMRC

Electronic payments can make by Direct Debit, Faster Payments by internet/telephone banking, CHAPs, BACS Direct Credit, Online debit or credit card using HMRC billpay VAT or pay my VAT and payment by Bank Giro Credit.

The best way to ensure that payments will make on time and use pay VAT by bacs. It will better to set up a Direct Debit. Payments are automatically taken from your account. You have to do is make sure your VAT return is submitted on time. Everything else is done automatically. The other VAT payment methods require your intervention. You have to knowledge of the processing times for payments to go through, which can result in late payments.

What are the Deadlines for Filing and Paying your VAT Returns?

Unless a business is in trouble with HMRC or receives regular repayment. It will normally submit and VAT return quarterly or annually.

  • Quarterly

    If you submit your VAT returns on a quarterly basis then you must file your return online with HMRC. Pay your VAT bill by midnight one calendar month and seven days after the end of the quarter. That means, if you are submitting your VAT return for the quarter ending 31 March 2021, the deadline for paying your bill is 7 May 2021.

  • Annually

    Some businesses use the Annual Accounting Scheme for VAT purposes. In that case, you submit your VAT return once a year and have to make advance payments towards. Your VAT bill for the next year based on your last return. These are known as payments on account. If you use the Annual Accounting Scheme. Your VAT return must be filed and paid two months after the end of your accounting period.

  • Monthly

    HMRC may ask you to file and pay your VAT return monthly. If you have struggled to make payments in the past or regularly exceed the threshold for quarterly payments. In this case, you have to file your return and make your payment one month and seven days after the end of the period. So, if you’re period ends on 31 December 2021, your return and payment must be received by 7 February 2022.

There are several ways HMRC VAT payment : Online, by telephone banking, and in person at your bank. Pay VAT in real life is quite rare nowadays, and standing orders only apply to businesses with particular accounting setups. For that reason, we’ll only cover phone and internet payments in the next sections.

  • In-person

    To pay a VAT return in-person, you need to order paying in slips from HMRC at least six weeks in advance of your payment. You can do this electronically, or by phone. Then you can pay your VAT bill at your bank or building society, with a cheque or cash and a paying-in slip. Cheques should be made out to ‘HM Revenue and Customs’ only and include your VAT registration number. Allow three working days for the money to clear into HMRC’s account.

  • Many businesses paying your VAT bill by BACS or bank transfer.  To use this facility, you will need HMRC’s bank account details for VAT payments, which are:
  • Account Number: 11963155
  • Sort Code: 08-32-00
  • Account Name: HMRC VAT
  • Reference: (your VAT number)
  • If you wish to pay by debit or credit card, you can use the online Bill Pay system.  Credit card payments incur a surcharge of 1.4%.  However VAT penalties, interest or surcharges cannot be paid this way.
  • Standing order

    For people on the Annual Accounting Scheme or using Payments on Account, this method takes three working days. You need Form VAT622 to set it up, or use electronic or telephone banking.

  • Direct Debit

    A VAT return can be paid via Direct Debit through your digital VAT account. Ensure you do this at least three days before your first payment is due. After that, it will be automatically taken from your account.

If paying HMRC deadline falls on a weekend or a public holiday, you must make sure the payment has arrived in HMRC’s account on the last working day before the deadline.

Are you struggling to make a VAT payment? Perhaps you need advice about asking HMRC for more ‘Time to Pay’.