How To Pay Your VAT Bill

Understanding how to pay your VAT bill can save time and hassle. To see the various different ways of paying your tax, please click here: https://www.gov.uk/pay-vat.

There are some items to take into consideration before paying your bill, such as: 

• Ensuring your deadline has not passed
  Before paying your VAT bill, it is important to ensure that your deadline has not already passed – you will be able to find this on your VAT return.
• The deadlines applicable to you
  There are different deadlines if you use the Annual Accounting Scheme, or the payments on account. The deadline for submitting your return online is usually one calendar month and 7 days after the end of an accounting period. Finding out when your VAT returns are due, and when the payment must clear HMRC’s account is simple to do by checking your online account.
  If the deadline falls on a weekend or bank holiday, your payment must arrive in HMRC’s bank account on the last working day before it (unless you pay by Faster Payments).
• Ways of paying a VAT Mini One Stop Shop (VAT MOSS) bill
  This UK scheme closed on 10th January 2021, and any required changes needed to have been made and paid by 1st January 2022. There are different requirements for businesses selling digital services to customers in the EU, which you can read more about here.
• Ways of paying your VAT bill
  It is important to always ensure your payment will reach HM Revenue and Customs’ (HMRC) bank account by the deadline. You can pay: 

• • • Same or next day
      • Online or telephone banking (Faster Payments) 
      • Through your online bank account
      • CHAPS
    • 3 working days
      • Direct Debit
      • Bacs
      • Standing order (only for businesses using the Annual Accounting Scheme or Payments on Account) 
      • Online by debit or corporate credit card
      • At your bank or building society
        

• Checking your payment has been received
  It is always best practice to ensure your payment has been received by viewing your VAT online account. This should update within 48 hours.
• Surcharges if you do not pay on time
  You will begin a 12 month ‘surcharge period’ if you are late with your VAT return or payment. The surcharge is a percentage of the outstanding VAT for the period in default, and is calculated on the due date. HMRC can charge you various penalties depending upon the tax required to be returned or declared. You can read more about surcharges here.
  

If you require any assistance or have questions regarding paying your VAT bill in accordance with the Government information listed above, please contact our friendly team of experts today by clicking here.