Produced by Tolley
  • 25 Oct 2021 13:45

The following Value Added Tax guidance note Produced by Tolley provides comprehensive and up to date tax information covering:

  • Paying VAT
  • What methods can be used for VAT return payments?
  • Credit card
  • Faster Payments, CHAPS or BACS
  • Direct debit
  • Online or mobile banking
  • Bank or building society
  • Standing order
  • When does the seven-day extension apply?
  • How do you pay for assessments, penalties and interest charges etc
  • More...

Paying VAT

This guidance note provides an overview of how VAT-registered businesses can pay the VAT due to HMRC.

What methods can be used for VAT return payments?

Please see the Guide to completing a UK VAT return and Guide to completing a UK VAT return for businesses using the Flat Rate Scheme guidance notes for more information on how to complete and submit a VAT return.

The VAT return and any payment due must reach HMRCby the due date stated on the return. This will be, for a normal return:

  1. no later than one month after the end of the VAT return period, and

  2. no later than one month after the effective date for cancellation of registration (or, in the case of a business that had failed to register, one month after the date when liability to be registered ceases)

Businesses can check the payment deadline using the payment deadline calculator provided by HMRC.

Please note that if the amount of VAT due to HMRCis less than £1, then there is no requirement to remit the payment. The amount should be carried forward to the next return.

It should be noted that the majority of businesses are required to submit their VAT returns online and are also required to make their payments electronically to HMRC. Please see the Submitting online VAT returns and Making Tax Digital ― VAT ― returns and compliance guidance notes for more information.

HMRC also has the power to require that all VAT payments are made by electronic means.

If the VAT return deadline falls on a weekend or bank holiday, the payment must reach HMRC’s bank account by the last working day before the deadline; businesses using faster payments can make the payment by the due date rather than the last working day.

The business’ UK VAT registration number must be quoted when making all VAT payments and there must be no spaces between the digits.

The following methods can be used to

Access this article and thousands of others like it
free for 7 days with a trial of TolleyGuidance.

Think Tax.
Think Tolley.

Critical, comprehensive and up-to-date tax information


Popular Articles

Reduced VAT rate ― supplies of fuel and power

The supply of fuel and power is treated as a supply of goods for VAT purposes. Supplies are fuel and power are normally liable to VAT at the standard rate. However, providing certain conditions are satisfied, it is possible for suppliers to charge the reduced rate of VAT on certain supplies of fuel

22 Δεκ 2021 18:49 | Produced by Tolley Read more Read more

Definition of plant and machinery

Legislative definition of plant and machineryThe general rule allowing capital allowances on plant and machinery is given at CAA 2001, s 11. There is no statutory definition of the term ‘plant and machinery’ but there is confirmation in the legislation on what constitutes a building or a structure

19 Οκτ 2021 08:10 | Produced by Tolley Read more Read more

Universal credit

Universal credit is a non-taxable benefit that is administered by the Department of Work and Pensions (DWP) and is available throughout the UK. It is available to individuals on low incomes whether they are in work, unemployed or self-employed. It is designed as a replacement for several ‘legacy

27 Οκτ 2021 16:01 | Produced by Tolley Read more Read more