How to pay VAT bill?

You have got a VAT bill and aren’t sure how to pay it? Here’s a simple guide to help you understand how to pay your HMRC VAT payments easily.

Things you should know before you pay your VAT bill.

Know your VAT deadline

You must know your VAT bill due date, VAT payments are usually due every quarter or annually, depending upon your VAT scheme. Make sure you know your deadlines to avoid any late payment penalties.

Check Your VAT Statement

One common mistake when paying VAT bills is miscalculating the amount due. Our free online VAT Calculator can help you avoid this by providing an accurate VAT amount.

Before making a payment, review your VAT statement carefully. This document shows how much VAT you owe. It’s important to double-check the figures to ensure there are no mistakes.

You need a reference number, which is your 9-digit VAT registration number. You can find your VAT registration number

•in your online VAT account

•on your VAT registration certificate.

How to pay your VAT bill?

You need to choose your VAT payment method, there are several ways you can pay your VAT bill to HMRC.

• Online Payment
• Debit or corporate credit card
• Bank or building society
• Standing order
• Direct Bank transfer
• Direct Debit

Online Payment

You can pay your VAT bill online simply by logging in to your online bank account. Go to your VAT online account and select “pay by bank”, then you will be directed to sign in to your online banking account for VAT payment.

How long does it take to pay a VAT bill online?

The payment usually happens quickly, but it might take up to 2 hours to show up in your bank account. 

Debit or corporate credit card

You can pay online also through a Debit or corporate credit card. You can pay with;

• a corporate credit card
• a corporate debit card
• a personal debit card

You cannot pay with a personal credit card.

There’s no fee if you pay with your personal debit card however there’s a non-refundable fee if you pay with a corporate credit card or corporate debit card.

How long does it take to pay a VAT bill with a debit or corporate credit card?

HM Revenue and Customs (HMRC) will record your payment as received on the day you make it, including weekends and bank holidays, instead of when it actually arrives in their account. This approach shows HMRC’s dedication to customer service by ensuring you’re not penalized for any delays beyond your control.

At your bank or building society

Use the paying-in slips to make your payment at your bank or building society using cash or a cheque. Ensure your cheque is made out to ‘HM Revenue and Customs only’. Remember to write your 9-digit VAT registration number on the back of the cheque.

How long does paying a VAT bill at your bank or building society take?

It usually takes up to 6 weeks for them to arrive.

Standing order

If you are using the “Annual Accounting Scheme” or making payments on account, then you can pay the VAT bill by standing order.

How long does a standing order take for VAT payments?

It takes 3 working days to reach the HMRC bank account.

Direct Bank transfer

You can pay directly from your UK bank account to HMRC’s account directly. You can pay directly from a UK bank account using Faster Payments, CHAPS (Clearing House Automated Payment System), or BACS (Bankers’ Automated Clearing Services)

For HMRC You can use the following bank details;

• Sort code – 08 32 00
• Account number – 11963155
• Account name – HMRC VAT

But if you want to pay from the overseas bank account you can use the following bank details for HMRC.

• Account number (IBAN) – GB36BARC20051773152391
• Bank identifier code (BIC) – BARCGB22
• Account name – HMRC VAT

How long does paying a VAT bill via direct bank transfer take?

It depends upon your bank’s processing time. Usually, it reaches the HMRC on the same or the next day.

Direct Debit

A direct debit is a payment option that allows us to automatically withdraw funds from your account on a specified date.

You can use your online VAT account to set up a direct debit. After you set up your direct debit, payments will automatically be detected from your bank account. Remember you need to set your Direct Debit 3 days before your due date.

How long does it take to pay a VAT bill through direct debit?

Payments made through direct debit typically take 3 to 5 business days to process.

Conclusion

In conclusion, paying your VAT bill on time is crucial for staying compliant with HMRC and avoiding penalties. You can make payments through several methods: online banking, HMRC’s online portal, Direct Debit, BACS or CHAPS transfers, debit or credit card, or Bank Giro. Each method has its own processing times, so choose one that ensures your payment reaches HMRC by the deadline. If needed, seek professional advice to handle any complexities.

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