It is now mandatory to submit your VAT Return online and to pay your VAT electronically. HM Revenue & Customs (HMRC) recommends that you pay by Direct Debit.
HMRC will only use your bank details to collect the amount you owe on your online VAT return by Direct Debit. They won't use them to make any repayments unless you tell them to.
If you have other taxes or duties to pay you will need to set up a separate Direct Debit Instruction (DDI). See the 'More useful links' section at the end of this page.
This guide explains how to set up a VAT online Direct Debit.
On this page:
Paying your VAT by online Direct Debit gives you more time to pay than any other method. You get at least ten extra calendar days.
You can't use the VAT online Direct Debit service if:
The Banking Industry's Bacs payment scheme has introduced a £20 million cap on single Bacs transactions. If you are making a payment over £20 million you'll need to contact your bank to make alternative arrangements - for example, paying by CHAPS. And you'll need to allow enough time for your transaction to reach HMRC on or before the payment deadline.
To set up an online Direct Debit you must be able to authorise Direct Debits from the bank/building society account that you intend to make payments from.
If you are an agent you must be an authorised signatory on your client's bank account to set up a Direct Debit Instruction (DDI) online on their behalf.
Before you set up a Direct Debit payment you will have to register for the VAT online service.
If you haven't already signed up you can find out more about VAT online using the link below.
How to sign up to use VAT online services
You must set up your Direct Debit Instruction (DDI) before you submit your next return and at least two bank working days before it is due. If the date your return is due is on a weekend or bank holiday you will need to set up your DDI at least three bank working days beforehand. Bank working days are Monday to Friday, excluding bank holidays.
The due date for your return is shown on the online screen where you enter your VAT return figures. The acknowledgement page you receive when you submit your return will tell you whether HMRC will collect the payment by Direct Debit or whether you need to pay by a different electronic method.
Work out your VAT payment deadline now
How to pay VAT - other electronic payment methods
Once you have signed up for the VAT Online services you can set up your VAT Direct Debit by:
You must check the on-screen message that tells you the earliest date that HMRC will collect payment from your account to make sure all of the details are right. If not, go back to the previous screen to make changes.
Once you have set up your Direct Debit instruction you just need to file your VAT return each quarter. HMRC will automatically collect the amount you show as due on your extended due date.
You only need to set-up your DDI once unless you want to change the bank or building society account details.
Once HMRC starts collecting your payments by Direct Debit they will appear on your bank statement as 'HMRC VAT'.
You can't change or cancel your Direct Debit payment using the HMRC online service. If you do need to make any changes please contact your bank or building society.
Online Direct Debit payment for other taxes
Read more on claiming a VAT repayment from HMRC
