Commentary

V7.404 Cash flow improvement—paying VAT by direct debit

Part V7 Tax planning
Part V7 Tax planning | Commentary

V7.404 Cash flow improvement—paying VAT by direct debit

Part V7 Tax planning | Commentary

V7.404 Cash flow improvement—paying VAT by direct debit

From 1 April 2012 virtually all VAT-registered businesses are required to submit their VAT returns online and pay any VAT due electronically. One advantage of online filing and electronic payment is the extra time to submit VAT returns and make VAT payments – normally an extra seven calendar days.

For businesses who pay by online Direct Debit HMRC will collect payment a further three bank working days after the extended due date. This means that online VAT Direct Debit offers more time to pay than any other method – a minimum of

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