700/60/17 Payments on account

Part V8 HMRC Notices
Part V8 HMRC Notices | Commentary

700/60/17 Payments on account

Part V8 HMRC Notices | Commentary

Payments on account

December 2017

This notice cancels and replaces Notice 700/60 (June 2014).

1 Introduction

1.1 What is this notice about?

This notice explains how Payments on Account (POA) works and what you must do if you are notified that you are liable to make payments on account. You are liable for inclusion in POA if:


    —     you account for VAT by quarterly returns, and


    —     in any period of 12 months or less you have a total liability of more than £2.3 million.

The £2.3 million includes VAT on imports and goods ex-warehouse.

1.2 What's changed?

Paragraphs 3.1, 3.2, 3.4, 4.2 and 5 have been updated in to show—


    —     update to the address for Payments on Account Team


    —     update to the name of VAT Process Owner Team

1.3 How does POA work?

Every VAT registered business with an annual VAT liability of more than £2.3 million is required to make payments on account.

Once in POA each business must make interim payments at the end of the second and third months of each VAT quarter. These interim payments are payments on account of the quarterly VAT liability. A balancing payment for the quarter, that is the quarterly liability less the payments on account made, is then made with the VAT return.

The payments on account and the balancing payments must be made by electronic transfer and the moneys must be in the HMRC bank account by close of business on the due date.

Main narrative treatment—V5.110.

2 Payments on account

Main narrative treatment—V5.110.

2.1 Will I be in POA?

We will calculate

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