How to pay VAT
This guide offers a reminder of VAT payment deadlines and explains all of the available payment options.
HM Revenue & Customs (HMRC) recommends that you make all of your VAT payments electronically. If you submit your VAT Return online then you must make payment electronically. HMRC counts all of the payment methods below as electronic apart from payment by post. Paying electronically:
- is safe and secure
- gives you better control over your money
- provides certainty about when your payment will reach HMRC
- avoids costs and postal delays
- lets you pay at a convenient time if you use Direct Debit, Internet/telephone banking or debit or credit card over the Internet
- in most cases gives you up to seven extra calendar days in which to pay - or at least ten calendar days if paying by Direct Debit online
If the VAT payable to HMRC on your return is less than £1, then you don't need to pay anything to HMRC or carry the amount forward.
From April 2010 it will be mandatory for all VAT-registered traders with a turnover of over £100,000, plus any newly registered traders (regardless of turnover), to submit their returns online and pay electronically.
On this page:
- Update: changes to HMRC bank accounts from 8 July 2009
- VAT payment deadlines
- Paying by Direct Debit
- Paying by Internet, telephone banking or BACS Direct Credit
- Paying by debit or credit card over the Internet: BillPay
- Paying by CHAPS transfer
- Paying by Bank Giro
- Paying by standing order
- Paying by post
- Paying from an overseas bank account
- No payment due
- Information about the Faster Payment service
- More useful links
Update: changes to HMRC bank accounts from 8 July 2009
HMRC bank account details for paying VAT changed from 8 July 2009. If you make payments by BACS Direct Credit, Internet or telephone banking, CHAPS or from an overseas account the new account details are included below. Please note these for future reference.
HMRC is now using two banks - Citi for BACS Direct Credit, Internet and telephone banking, CHAPS and payments from an overseas account and the Royal Bank of Scotland Group for Bank Giro credits.
If you experience problems using the new account details
HMRC is working closely with the banking industry to ensure their systems are updated to reflect the new HMRC bank account details. However please be aware that not all banks will be able to make the change immediately and for a short period you may need to continue to use the old account details. Please be assured that if this is the case your payment will be received by HMRC and credited to your VAT account.
VAT payment deadlines
You are responsible for calculating how much VAT you owe and for paying VAT on time. Paying on time will help you avoid having to pay a penalty.
In most cases, paying electronically will provide you with up to seven extra calendar days in which to pay. This means that you must ensure that cleared funds reach HMRC's bank account by the seventh calendar day after your standard due date. The exception to this is payment by Direct Debit as HMRC will automatically collect payment from your bank account three bank working days after the extra seven calendar days following your standard due date.
If you send payment by post the payment deadline is the date that your VAT Return is due.
If you miss the payment deadline you may be liable to a surcharge for late payment.
Please note that you must pay your VAT electronically if you submit an online return. If you submit a paper return, you can either pay electronically or enclose payment with your return.
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
Annual Accounting Scheme
If you use the Annual Accounting Scheme the deadlines work differently because you spread payments throughout the year and only submit one return per year. The deadline for making any final balancing payment is the date that your return is due, which is two months after the agreed year end date for the scheme. The extra seven or ten calendar days referred to earlier when paying electronically don't apply with this scheme.
Read more about the Annual Accounting Scheme
Paying VAT by Direct Debit
Direct Debit online
If you've signed up for the VAT Online service you can pay your VAT Return by Direct Debit.
HMRC recommends that you pay by Direct Debit because your payments are collected automatically from your bank account on the third bank working day after the extra seven calendar days following your standard due date.
Find out how to sign up for the VAT Online service if you haven't already
Find out about The Direct Debit Guarantee (PDF 49K)
When you can't use the online VAT Direct Debit payment facility
You can't use the online VAT Direct Debit payment facility if:
- you make payments on account and submit quarterly returns
- you submit paper VAT Returns
- you use the Annual Accounting Scheme, except to make a balancing payment - but you can set up manual Direct Debit payments - see the later section on the Annual Accounting Scheme
Who can set up the Direct Debit Instruction?
Only the person authorised with your bank or building society can set up a Direct Debit Instruction.
Setting up payments - how much time to allow
In order to set up to pay by Direct Debit you need to complete the online Direct Debit Instruction at least five bank working days before you submit your next return online. The system will then be ready to collect your payment associated with that return and all future online returns. Bank working days are Monday to Friday excluding bank holidays.
If you haven't left enough time then you'll have to pay by one of the other payment methods described earlier in this guide.
How to set up VAT Online Direct Debit payments
To be able to set up the Direct Debit Instruction you must already be signed up for the VAT Online service.
To set up the online Direct Debit Instruction you will need to:
- Log in to the VAT Online service.
- Select 'Access service' under 'Submit a VAT Return/set-up VAT Direct Debit instruction' - this takes you to the 'At a glance page'.
- Click on the Direct Debit link in the left-hand menu or the 'Set up a Direct Debit Instruction' link in the middle of the page.
- Enter and then confirm the bank account details for the Direct Debit Instruction and then confirm the two statements on-screen - that you are the account owner and that the account does not require multiple signatories.
- Check the on-screen message that tells you the earliest date that HMRC will collect payment from your account and confirm that all of the details are correct. If they're not, go back to the previous screen to make corrections.
- View the online Direct Debit Instruction on-screen prior to submission.
- Re-enter your user ID and password as an additional security measure and submit.
You will receive an on-screen message confirming that your online Direct Debit Instruction has been successfully set up. You can save a copy to your computer or print for your records.
Once the Direct Debit Instruction is setup it will automatically collect the VAT shown as due on your future online VAT Returns. Your payment will be collected on the third bank working day after the extra seven calendar days following your standard due date.
Only the amount shown as due to HMRC on your online return will be collected by Direct Debit. HMRC won't collect any other outstanding amounts in this way.
Your bank statement
Once HMRC starts to collect your payments by Direct Debit they will appear on your bank statement with the description 'HMRC VAT'.
Cancelling or amending an online Direct Debit payment
Your Direct Debit payment cannot be cancelled or amended via the online service. Instead, you should contact your bank and they will automatically advise HMRC of any changes. This includes when your Direct Debit Instruction is being transferred to a different bank, or when it is transferred to a different branch within the same bank. HMRC will only be able to make amendments notified by your bank or building society.
How to set up manual Direct Debit payments for Annual Accounting
You can't use the online VAT Direct Debit service for your regular Annual Accounting Scheme payments but you can set up a manual Direct Debit. To do so simply choose Direct Debit as your preferred payment method when applying to join the scheme and include a completed Direct Debit form with your application.
You can, however, use the VAT Online Direct Debit service to make a balancing payment when submitting your annual return - follow the earlier instructions on setting up an online Direct Debit.
Changing your Annual Accounting Scheme payment method
When using the Annual Accounting Scheme, you are expected to stay with your chosen payment method for at least 12 months.
If you wish to change payment method after this period you need to notify HMRC's Annual Accounting Registration Unit:
HM Revenue & Customs
Annual Accounting Registration Unit
National Registration Services
Imperial House
77 Victoria Street
Grimsby
DN31 1DB
Go to Direct Debit form (VAT623)
Read more about the Annual Accounting Scheme
Paying VAT by Internet, telephone banking or BACS Direct Credit
You can use your bank or building society services to pay by Internet, telephone banking or BACS Direct Credit (available to businesses that are authorised by their bank to submit files direct to BACS).
To make the payment you'll need HMRC's bank account details given below and your VAT registration number.
If you pay using any of these methods, your bank will transfer your money electronically and you may receive up to an extra seven calendar days after the standard due date for the payment to reach HMRC.
It normally takes three bank working days for payment to reach HMRC. Bank working days are Monday to Friday excluding bank holidays. Some bank and building societies can take longer. You should check with your bank or building society to see how long they take to transfer payment and what their cut-off time is for initiating payment. If they take longer then you will need to initiate your payment earlier.
Please take care if you need to enter HMRC's bank account details. If you make a mistake with the sort code or account number there may be a delay before your record is credited or your payment may not be received at all. You may also incur a surcharge penalty for late submission of your payment.
HMRC's bank account details
| Sort code |
Account number | Account name |
|---|---|---|
| 08 32 00 | 11963155 | HMRC VAT |
Bank account changes from 8 July 2009
The account details above were updated on 8 July 2009. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes.
If you experience problems using the new account details
HMRC is working closely with the banking industry to ensure their systems are updated to reflect the new HMRC bank account details. However please be aware that not all banks will be able to make the change immediately and for a short period you may need to continue to use the old account details. Please be assured that if this is the case your payment will be received by HMRC and credited to your VAT account.
Your VAT registration number
You must give your VAT registration number as the reference number which is made up of nine digits. When you receive correspondence from HMRC the number will be shown in the format 123 4567 89 but when making payment it is important that you show the number with no gaps between the characters, for example 123456789 (this reference is only an example and should not be used to make a payment), otherwise there could be a delay in updating your record.
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
Paying VAT by debit or credit card over the Internet: BillPay
If you have a debit or credit card issued by a UK card issuer, you can pay your VAT over the Internet using the BillPay service provided by Santander Corporate Banking (formerly Alliance & Leicester Commercial Bank).
Please note:
- If you wish to pay by credit card a non-refundable transaction fee of 1.25 percent will be added to the charge. Any charge of less than £00.01p will be rounded up to a penny.
- HMRC does not accept American Express or Diners Club cards.
- You cannot pay surcharges, interest or penalties this way.
A BillPay payment takes three bank working days to reach HMRC. Bank working days are Monday to Friday excluding bank holidays
Information you will need
To make a payment you will need your:
- debit or credit card details
- VAT registration number - this is made up of nine digits, for example 123 4567 89 (this reference is only an example and should not be used to make a payment) which must be entered without spaces
Disclaimer
The BillPay service is an Santander Corporate Banking (formerly Alliance & Leicester Commercial Bank) product. HMRC will liaise with the supplier in the unlikely event that there are difficulties with access or service availability.
Further information on making a debit or credit card payment
Make a payment or register on the BillPay service
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
Paying VAT by CHAPS transfer
The CHAPS system enables you to tell your bank to make an immediate payment that will reach HMRC on the same day provided you initiate payment within the time specified by your bank (usually between 9.00 am and 3.00 pm).
CHAPS payments are more expensive than other payment methods but may be of benefit if you are making very large payments.
You may also receive up to an extra seven calendar days after the standard due date for your CHAPS payment to reach HMRC.
Providing HMRC bank account details
To pay your VAT by CHAPS transfer you will need HMRC's bank account details.
Please take care if you need to enter HMRC bank account details. If you make a mistake with the sort code or account number there may be a delay before your record is credited or your payment may not be received at all.
You may also incur a surcharge penalty for late submission of your payment.
HMRC's bank account details
| Sort code |
Account number | Account name |
|---|---|---|
| 08 32 00 | 11963155 | HMRC VAT |
Bank account changes from 8 July 2009
The account details above were updated on 8 July 2009. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes.
If you experience problems using the new account details
HMRC is working closely with the banking industry to ensure their systems are updated to reflect the new HMRC bank account details. However please be aware that not all banks will be able to make the change immediately and for a short period you may need to continue to use the old account details. Please be assured that if this is the case your payment will be received by HMRC and credited to your VAT account.
Your VAT registration number
You must give your VAT registration number as the reference number which is made up of nine digits. When you receive correspondence from HMRC the number will be shown in the format 123 4567 89 but when making payment it is important that you show the number with no gaps between the characters, for example 123456789 (this reference is only an example and should not be used to make a payment), otherwise there could be a delay in updating your record.
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
Paying VAT by Bank Giro
If your bank or building society offers the Bank Giro service you can make a VAT payment at your own bank or building society branch by cheque or cash using a Bank Giro paying-in slip. HMRC treats any payment made by Bank Giro as electronic which means you may get up to an extra seven calendar days after the standard due date for the cleared payment to reach them.
To use this payment method HMRC will need to send you a book of Bank Giro paying-in slips that are pre-printed with your VAT registration number and the HMRC bank account details.
You can order a book of paying-slips by email or over the telephone.
HMRC will need the following information from you:
- VAT registration number
- company name
Ordering by email
Use the link below to send an email order to HMRC.
Order a book of VAT paying in slips by email
Ordering by telephone
To order by telephone please call HMRC's payment helpline on Tel 01702 366376 or 01702 366314.
Once you have received your book of paying-in slips:
- take your paying-in slip to your own branch (other banks may refuse to accept it or may charge you for this service)
- make cheques payable to 'HM Revenue & Customs only' followed by your nine-digit VAT registration number
To allow for possible delays in bank processing (for which HMRC is not responsible) please allow at least three bank working days for your payment to reach them. Bank working days are Monday to Friday excluding bank holidays.
Bank account changes from 8 July 2009
From 8 July 2009 HMRC will be using NatWest to process payments made by Bank Giro. If you currently pay using this payment method you can continue to use the slips in your current Bank Giro booklet. In due course HMRC will send you a booklet containing the new bank account details. Once you receive this you should use this instead of your old booklet.
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
Paying VAT by standing order
You can pay your VAT by standing order if you have been accepted for the following schemes:
- Annual Accounting
- Payment on Account
Annual Accounting
If you want to pay by standing order you need to indicate this on the form when you apply for the Annual Accounting Scheme. Once your application is accepted HMRC will send you a standing order mandate that tells your bank how much and when to pay them. You will then need to fill in the rest of the form with your bank account details and send it to your bank so they can set up the standing order.
You are expected to stay with your chosen payment method for at least 12 months. If you wish to change payment method after this you need to notify the Annual Accounting Registration Unit by writing to the address below:
HM Revenue & Customs
Annual Accounting Registration Unit
National Registration Service
Imperial House
77 Victoria Street
Grimsby
DN31 1DB
Payment on account
If you wish to make payments on account by standing order, you may use HMRC's standing order authority form which contains the HMRC bank account details you will need. To get a copy of the form online follow the link below.
Standing order authority request form
If you want to set up a standing order via Internet or telephone banking you will need to provide HMRC's bank account details. Please take care if you need to enter HMRCs bank account details. If you make a mistake with the sort code or account number there may be a delay before your record is credited or your payment may not be received at all. You may also incur a surcharge penalty for late submission of your payment.
HMRC's bank account details
| Sort code |
Account number | Account name |
|---|---|---|
| 08 32 00 | 11963155 | HMRC VAT |
Bank account changes from 8 July 2009
The account details above were updated on 8 July 2009. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes.
If you experience problems using the new account details
HMRC is working closely with the banking industry to ensure their systems are updated to reflect the new HMRC bank account details. However please be aware that not all banks will be able to make the change immediately and for a short period you may need to continue to use the old account details. Please be assured that if this is the case your payment will be received by HMRC and credited to your VAT account.
Your VAT registration number
You'll also need to give your VAT number as the reference number which is made up of nine digits. When you receive correspondence from HMRC the number the number will be shown in the format 123 4567 89 but when making payment it is important that you show the number with no gaps between the characters, for example, 123456789 (this reference is only an example and should not be used to make a payment), otherwise there could be a delay in updating your record.
Read more about choosing the best VAT accounting scheme for your business
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
Paying VAT by post
HMRC recommends that you make your VAT payments electronically using one of the methods described elsewhere in this guide. Electronic payments are generally more efficient and secure, provided you give HMRC an accurate reference number (for example your VAT registration number).
From April 2010 it will be mandatory for all VAT-registered traders with a turnover of over £100,000 (exclusive of VAT), plus any newly registered traders (regardless of turnover), to submit their returns online and pay electronically. But you can register and enrol now to submit your returns online.
However if paying by post please:
- make your cheque payable to 'HM Revenue & Customs only' followed by your nine-digit VAT registration number and send it with your return using the pre-addressed envelope provided by HMRC
- do not fasten the cheque with paper clips or staples or in any other manner
If you are sending a payment to HMRC with your return and do not have a pre-addressed HMRC envelope please send your return and payment to:
HM Revenue & Customs
VAT Controller
VAT Central Unit
BX5 5AT
If exceptionally you need to use a courier service to deliver your return please use the following address:
HM Revenue & Customs
Alexander House
Southend
SS99 1AA
To allow for possible postal delays (for which HMRC is not responsible) please allow at least three working days for the payment to reach them. If your payment is late you may incur a surcharge for late submission of your payment and/or your return.
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
Paying VAT from an overseas bank account
You can pay your VAT electronically from your bank account, even if it's not in the UK. HMRC may give you up to an extra seven calendar days after the standard due date for electronic payments to reach them. You must still ensure your cleared payment reaches them by the seventh calendar day after your standard due date.
You will need to provide your bank or building society with HMRC's bank account details. Please take care if you need to enter HMRC bank account details. If you make a mistake with the sort code or account number there may be a delay before your record is credited or your payment may not be received at all.
Bank account changes from 8 July 2009
The account details above were updated on 8 July 2009. Please note these for future reference. You should also arrange to update any templates or transactions that you have stored for online banking purposes.
If you experience problems using the new account details
HMRC is working closely with the banking industry to ensure their systems are updated to reflect the new HMRC bank account details. However please be aware that not all banks will be able to make the change immediately and for a short period you may need to continue to use the old account details. Please be assured that if this is the case your payment will be received by HMRC and credited to your VAT account.
Euro BACS payment method
The account name you should use is 'HMRC VAT BACS EURO'.
| Account number | International Bank Account Number (IBAN) | Sort code |
|---|---|---|
| 12000849 | GB06CITI18500812000849 | 08 32 00 |
Euro CHAPS payment method
The account name you should use is 'HMRC VAT CHAPS EURO'.
| Account number | International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) |
|---|---|---|
| 12000717 | GB78CITI18500812000717 | CITIGB2L |
All other currencies, except euro
The account name you should use is 'HMRC VAT'.
| International Bank Account Number (IBAN) | SWIFT Bank Identifier Code (BIC) |
|---|---|
| GB25CITI08320011963155 | CITIGB2L |
Note: Where an IBAN is shown you must give this number as well as the SWIFT BIC.
Your VAT registration number
You must give your VAT number as the reference number which is made up of nine digits. When you receive correspondence from HMRC the number will be shown in the format 123 4567 89 but when making payment it is important that you show the number with no gaps between the characters, for example 123456789 (this reference is only an example and should not be used to make a payment), otherwise there could be a delay in updating your record.
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
No VAT payment due
You must let HMRC know if you have no VAT payment due by completing your VAT Return showing that either a 'nil' payment is due, or that you are claiming a VAT repayment. The best way to do this is to send in your return online. If sending a paper return you must complete and return it by the due date shown on the top right hand side in the pre-addressed envelope provided.
From April 2010 it will be mandatory for all VAT-registered traders with a turnover of over £100,000 (exclusive of VAT), plus any newly registered traders (regardless of turnover), to submit their 'nil' returns online.
If you do not send in your completed return by the due date an automatic assessment of the VAT due for that period will be sent to you.
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
Information about the Faster Payment service
HMRC is currently unable to receive or make payments using the Faster Payment service, which is offered by some banks.
For a bank's customer to make a Faster Payment, both banks involved in the transaction need to be members of the Faster Payment scheme. The Bank of England, which is currently HMRC's banking supplier, made a decision some time ago to withdraw from the provision of retail banking services to its customers (one of which is HMRC) and has not joined the Faster Payments Scheme.
HMRC is in the process of moving its business to a new banking supplier. Following this migration the opportunity for using the Faster Payments service will be reviewed.
More useful links
What to do if you can't pay your VAT
