Paying VAT

Produced by Tolley

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

  • Paying VAT
  • Coronavirus (COVID-19)
  • VAT return payments
  • Paying by credit card
  • HMRC payment details
  • Direct debit
  • Paying in euros
  • Seven-day extension
  • VAT repayments
  • Set-off
  • More...

Paying VAT

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marked the end of the Brexit transition / implementation period entered into following the UK’s withdrawal from the EU. At this point in time, key transitional arrangements came to an end and significant changes began to take effect across the UK’s VAT and customs regime. This document contains guidance on subjects potentially impacted by these changes. Before continuing your research, see the Brexit — overview guidance note.

This guidance note provides an overview of how VAT registered businesses will need to pay VAT and the procedure that needs to be followed in order to obtain a VAT refund.

Coronavirus (COVID-19)

As a result of the coronavirus (COVID-19) pandemic, businesses were able to delay certain VAT payment, see the Coronavirus (COVID-19) and VAT - delaying payments guidance note for more details.

VAT return payments

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

The VAT return and any payment due must reach HMRC by 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 taxable person not registered, 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 HMRC is less than £1, then the business is not required to remit the payment. The amount should be carried forward to the next return.

Businesses must use one of the following methods to pay the VAT due to HMRC:

  1. direct debit for returns submitted online, unless the

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