PAYING VAT BILLS: VAT Returns show the deadline to pay your VAT bill. But, the deadlines differ if you are on the Annual Accounting Scheme or the Payment on Account scheme.
Note: The VAT Mini One Stop Shop ‘VAT MOSS‘ uses a different method for bill payments.
Ways to Pay Your VAT Bill
The company must ensure all payments reach the bank account of HMRC before the deadline date. Failure to do so can lead to VAT surcharges and penalties.
You can use the ‘VAT payment deadline calculator‘ for working out how much time to allow for bill payments.
Same Day (or next day)
- CHAPS (Clearing House Automated Payment System)
- Online or telephone banking when using the ‘Fast Payments‘ method.
3 Working Days
- Direct Debit
- Bacs (Bankers’ Automated Clearing Services)
- Online by debit card or a credit card
- Bank or Building Society
Those who are on the Annual Accounting Scheme or Payments on Account Scheme can use Standing Order to pay your VAT bill.
Note: Weekends and UK Bank Holidays do not count as working days. If the deadline falls on these days then the payment must be in HMRC’s account on the last working day before. This does not apply if paying by the ‘Faster Payments’ method.
Bank Details: Online or Telephone Banking, CHAPS, Bacs
All VAT payments by Bacs, CHAPS or Faster Payment go to this HM Revenue and Customs bank account.
Sort Code: 08 32 00
Account Number: 11963155
Account Name: HMRC VAT
CHAPS Instruction: CHAPS form
9-Digit VAT Reference Number
You will need the company 9-digit registration number to make VAT bill payments. Log in to the Government Gateway system to see your registration number. It also shows on the company VAT registration certificate.
Make sure you do not enter any spaces to the 9-digit reference number when you pay your VAT bill. Entering the wrong reference number may delay the payment.
How Long do VAT Bill Payments Take?
Online or telephone banking (using Faster Payments) usually reach HMRC account the same day or the following day. This includes weekends and bank holiday periods in the United Kingdom.
CHAPS (Clearing House Automated Payment System) go into HMRC account the same working day. But, the payment must get made within the bank’s processing cut-off time. As a rule, Bacs transactions take 3 working days to clear.
Note: Every bank has its own processing limits and processing cut-off times. Check these limits and times before planning a date to send your VAT bill payments.
Pay Your VAT Bill from Overseas
Account number (IBAN): GB36BARC20051773152391
Bank identifier code (BIC): BARCGB22
Account Name: HMRC VAT
Her Majesty’s Revenue and Customs banking address is:
Barclays Bank PLC
1 Churchill Place
London
United Kingdom E14 5HP
Paying VAT Bill by Debit or Credit Card Online
Debit and Credit Card Payments
You can pay VAT online. But, credit card payments do incur a fee which is non-refundable. Remember to use the company 9-digit registration number for all online card payments.
Note: It can take 3 working days for a payment to go into HMRC bank account. Entering the wrong VAT payment reference number is likely to delay the payment.
Multiple Card Payments
Since the 1st of January 2016 HMRC changed the rules on using a credit or debit card to pay taxes. There are limits on the number of times they can get used within certain time periods.
Note: There are no fixed limits. HMRC base them on what is reasonable. As a rule, they base their decisions on payment card industry standards and guidance.
This only applies to multiple card payments for the same tax bill. The rules do not apply if you are using the cards for different types of taxation.
That means you can use the same card to pay for VAT, Corporation Tax, and Employer’s PAYE.
All payments made by card must be in full. Partial payments are not allowed. You can use a different method, such as a bank transfer, if full payment is not possible using the card.
Note: You can pay your tax bill by debit or credit card after setting up the payment system with HMRC.
Paying VAT Bill by Direct Debit
To set up a Direct Debit you will need to log in to the business VAT online account. As a rule it takes up to 3 days to process a new Direct Debit application. Take this into account when submitting a return because a payment may not meet the deadline.
Payment collection is an automatic process once the Direct Debit is set up. Payments get taken from the account 3 working days after VAT Return deadlines. If a tax return is late, the payment gets deducted three working days after filing the return.
Note: You would be able to pay your tax bill by Direct Debit after setting up the payment system with HMRC.
Annual Accounting Scheme for VAT Bills
Some VAT businesses use the Annual Accounting Scheme. In this case a Direct Debit can only get used for paying the balance of the tax return. You should use the VAT 623 form to set up a Direct Debit for the AAS.
Paying at a Bank or Building Society
Payments by bank or building society must use special paying-in slips. You can order the paying-in slips online or by phone from HMRC. But, they may take up to six weeks to arrive.
Only these special slips can get used to pay cash or cheques into the company bank or building society. Make them payable to “HM Revenue and Customs” when paying in by cheque followed by the 9-digit number.
Log in to the Government Gateway service to see your registration number. It also shows on the company VAT registration certificate.
Note: It can take 3 working days for a payment to go into HMRC bank account. Entering the wrong VAT payment reference number is likely to delay the payment.
Paying VAT Bill by Standing Order
Businesses using the ‘Annual Accounting Scheme’ or ‘Payments on Account‘ can pay VAT bills by standing order. They can take up to three working days to reach HMRC bank account.
Annual Accounting Scheme
Make a request to pay by standing order when you apply for the Annual Accounting Scheme. Once accepted, you can set up a standing order online, by filling in the VAT 622 form, or by telephone banking.
Payments on Account
The process for setting up standing orders also uses the VAT 622 form. Other options include telephone banking or you can set it up online.
How to Check VAT Payments
VAT payments to HM Revenue and Customs show up on the business online account. As a rule you will see them within 48 hours after the transaction gets completed.