How do I pay VAT?

VAT is paid based on your VAT return but if you are asking yourself - How do I pay VAT? - you are in the right place. 

Your VAT return shows the difference between the VAT you have charged on sales and the VAT you have suffered on your purchases. 

The return submission and payment (unless you are using Annual Accounting VAT) need to be submitted to HMRC one month and seven days after the end of the VAT quarter.

That means that if your VAT quarter ended on 31st January, your return and payment would be due on or before the 7th of March. 

Find out about your VAT quarters and when your return is due here - https://www.annetteandco.co.uk/when-is-my-vat-return-due/ 

How to make a VAT payment

There are a number of ways to make your VAT payment. HMRC must received cleared funds by the payment deadline date. 

Same or next day

• online or telephone banking (Faster Payments)
• through your online bank account
• CHAPS

Three 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

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).

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