Pay your VAT to HMRC

Introduction

This guide is written to help small business owners understand what VAT is, when VAT is due to be paid and the different ways of paying VAT to HM Revenue & Customs (HMRC).

What is VAT?

VAT (Value Added Tax) is the tax your customers have to pay when they buy goods or services. The current rate of VAT in the UK is 20%.

As a business you may be required to register for and collect VAT from your customers. The VAT collected must then be paid to HMRC on a frequent basis. To read more about whether your business should be VAT registered, take a look at our article should I register for VAT?

When is VAT due to be filed and paid with HMRC?

The majority of small businesses must submit a VAT Return every 3 months.

There are a few circumstances in which this does not apply, for example if you are preparing your first VAT Return or you have registered for the Annual Accounting VAT scheme. This article only applies if your business submits and pays VAT every 3 months. If you are not sure how often you must submit your VAT Returns please ask your accountant.

The deadline for submitting your VAT Returns online and paying HMRC are usually the same, 1 calendar month and 7 days after the end of the VAT Return period.

Example

Pablo owns a business called Tropical Flowers. Tropical Flowers has a VAT Return period of 1st April to 30th June (3 months). Tropical Flowers' VAT Return needs to be submitted online and the VAT paid to HMRC no later than the 7th August.

What information do I need?

You will need your 9-digit VAT number. You can find your VAT number in your TaxBoxx App under Taxes and Value Added Tax (VAT). Do not put any spaces between the digits when paying your VAT bill.

If you choose to pay your VAT by debit or corporate credit card you will also need to know the last month in your VAT Return period.

Ways to pay

You can pay your VAT the following ways. We recommend you check your bank's transaction limits and processing times before making payment. Please ensure you allow enough time for your payment to reach HMRC before the deadline. You can view the payment processing times for each payment method below.

Online or telephone banking, CHAPS, BACS

Sort code: 08 32 00
Account number: 11963155
Account name: HMRC VAT
Reference: Your 9-digit VAT Number

How long will my payment take to reach HMRC?

• Faster payments (online/telephone banking): same or next day
• CHAPS payments: same day if you pay within your bank's processing times
• BACS payments: usually 3 working days

By debit or corporate credit card online

There is a fee if you pay by corporate debit card or corporate credit card. There's no fee if you pay using your personal debit card. You cannot pay by personal credit card. Visit tax.service.gov.uk/pay to make payment.

How long will my payment take to reach HMRC?

Allow 3 working days for your payment to reach HMRC.

Other payment methods

There are other ways to pay your VAT to HMRC however the above payment methods are the ones we recommend. If the above payment methods are not convenient for you please contact your accountant for alternative arrangements.