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

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