Online VAT returns are due one month and seven days after the end of your VAT period. Payment of any VAT owed is due at the same time.
You must make sure your payment reaches HM Revenue and Customs (HMRC) by the deadline. If the deadline falls on a weekend or bank holiday, your payment must reach HMRC on the last working day before your deadline. You may have to pay a surcharge if you don’t pay on time.
Your payment deadline will vary by a few days according to your method of payment. Find out your exact VAT payment deadline using the GOV.UK calculator.
Different deadlines apply to the annual accounting scheme and for larger businesses which must make payments on account.
There are several methods you can use to pay your VAT bill. You can:
- complete a form to request a CHAPs payment
- make a payment online or via telephone banking
- pay online using a debit or credit card
- pay by Direct Debit using HMRC Online services
- make a payment at your bank or building society [Note: you will need paying in slips which can take up to six weeks to arrive]
- pay your bill by standing order if you use the annual accounting scheme
You can check that your payment has been received by logging in to your online VAT account. It can take up to 48 hours for your payment to show.
VAT payment problems
If you think you will struggle to pay your VAT on time, you might be able to set up a 'time to pay' arrangement. You can set up a payment plan online if:
- you have filed your most recent VAT return
- you own less than £20,000
- it is within 28 days of the payment deadline
- you do not have other HMRC payment plans
- you plan to pay off your VAT debt within six month
Businesses using the cash accounting, annual accounting or that make VAT payments on account cannot use the online 'time to pay' service but must contact HMRC instead.