This guide offers a reminder of VAT payment deadlines and explains all of the available payment options.
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:
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.
Since 1 April 2010 it has been mandatory for all VAT-registered traders with a turnover of £100,000 or more, plus any newly registered traders (regardless of turnover), to submit their returns online and pay electronically. From the 1 April 2012 this requirement has been extended to virtually all VAT-registered businesses.
On this page:
From 16 December 2011 HMRC will be able to accept payments made using the Faster Payments Service (FPS).
FPS is a service that has been introduced by the banking industry that allows payments by internet or telephone banking to be received on the same or next day, provided the value of the payment does not exceed the limit set by your own bank or building society.
Before making a payment using FPS you should contact your bank or building society to confirm the services available to you, any daily value limits and latest cut off times for making a payment.
More about Faster Payments Service
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 surcharge.
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
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
If you make payments on account (POA), your interim payments are due on the last working day of the second and third month of every VAT quarterly period, and must be made electronically. Your return, along with your balancing payments, is due on the last working day of the month. If you are subject to POA you don't qualify for the seven extra days for paying VAT electronically.
Read more about payments on account in Notice 700/60
To help you pay on time, you might want to visit the Business Link website where you can create a calendar of key tax deadlines for the next 12 months. You can also sign up to receive regular email alerts as each date approaches.
Set up tax deadline email alerts (Opens new window)
From April 2011 if you have been told by HMRC to submit your VAT Return online but sent it in by paper instead, you will be charged a penalty. These penalties will apply to returns for accounting periods ending on or after 31 March 2011.
You can pay your penalty by any of the methods described in this guide, except Direct Debit or BillPay.
Read more about penalties for submitting a paper VAT Return
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)
You can't use the online VAT Direct Debit payment facility if:
Only the person authorised with your bank or building society can set up a Direct Debit Instruction (DDI).
If you are an agent you must be an authorised signatory on your client's bank account to set up a DDI online on their behalf.
You must set up your Direct Debit Instruction (DDI) before you submit your next return and at least two bank working days before the return is due when the due date falls on a weekday. For example, if your return is due on Tuesday 7 September, two bank working days before this is Friday 3 September.
If your return due date falls on a weekend or bank holiday you will need to set up your DDI at least three bank working days before the return is due. For example, if your return is due on Sunday 7 November, three bank working days before this is Wednesday 3 November.
If your return is due in less than two or three bank working days as shown in the examples above then for this return only you will need to pay by a different electronic method.
Bank working days are Monday to Friday, excluding bank holidays
The due date for your return is shown on the screen where you enter your VAT return figures. The acknowledgement page displayed when you submit your return will also confirm whether the payment will be collected by Direct Debit or whether you need to pay by a different electronic method.
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:
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.
Once HMRC starts to collect your payments by Direct Debit it will appear on your bank statement with the description 'HMRC VAT'.
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.
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.
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
Annual Accounting Scheme - go to Direct Debit form (VAT623)
Read more about the Annual Accounting Scheme
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:
A BillPay payment takes three bank working days to reach HMRC. Bank working days are Monday to Friday excluding bank holidays
To make a payment you will need your:
Check your VAT registration number using HMRC’s registration number checker
The BillPay service is a 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
You can use your bank or building society services to pay by:
Bacs Direct Credit - your payment is transmitted by Bacs direct to HMRC’s bank account. This service is only available for customers whose businesses are authorised by their bank to submit files direct to Bacs. It normally takes three bank working days for a payment by Bacs Direct Credit to reach HMRC. Bank working days are Monday to Friday excluding bank holidays.
Internet banking – select ‘HM Revenue & Customs’ from your bank/building society’s beneficiary list (sometimes called a ‘payee list’) or use HMRC’s bank account details to set up a manual instruction. You also need to enter your reference (VAT registration number) and the payment amount. When using your bank or building society’s beneficiary list, please ensure you take care in selecting the correct HMRC entry for the payment you want to make.
Telephone banking – phone your bank/building society and give them HMRC’s bank account details, your reference and the amount to pay.
Faster Payments – this is a service that has been introduced by the banking industry for sending payments initiated by internet or telephone banking on the same or next day, providing the value of the payment does not exceed the value limit set by the sending bank.
Before making a payment you should contact your bank or building society to confirm the services available to you, any daily value limits and the latest cut off times for making a payment.
More about the Faster Payments Service
Information about Faster Payment limits (Opens new window)
CHAPS – this enables you to tell your bank to make a payment that will reach HMRC on the same day provided you initiate the 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 can complete and print off a standard format instruction to your bank to make a CHAPS payment to HMRC by following the links below. Please note that some bank branches may require an accompanying letter as an authorisation to pay.
Complete and print out CHAPS payment request
To pay your VAT using any of the above payment methods you'll need to set up the payment details with your bank. You'll need to supply them with:
When making a payment to HMRC please make sure you always use the correct bank account details and reference number. And that your bank has confirmed that your payment has been made successfully.
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. That could mean you are charged a penalty, interest or surcharge for late payment.
When paying by Bacs Direct Credit, internet or telephone banking,
Faster Payments or CHAPS you should only use the bank account details
shown below and not the account number shown on the front of your HMRC
payslip as this sort code is only for payments made by Bank Giro or
at a Post Office.
Sort code |
Account number |
Account name |
|---|---|---|
08 32 00 |
11963155 |
HMRC VAT |
If your bank asks for the address of the bank to which payment is being made please use
Citi
Citigroup Centre
Canada Square
Canary Wharf
London
E14 5LB
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.
Check your VAT registration number using HMRC's registration number checker
Remember, if you're late submitting your return or payment, you may be charged a penalty. Interest may also be charged.
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
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.
The new change relating to cleared funds for cheque payments by post does not affect any Bank Giro payments made by cheque.
To use this payment method you need to ask HMRC 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.
Please note it can take four to six weeks for VAT Bank Giro paying-in slips to be printed and sent to you. If you need to make a payment before your paying-in slips arrive then you'll have to pay by one of the other payment methods described earlier in this guide.
HMRC will need the following information from you:
Use the link below to send an email order to HMRC.
Order a book of VAT paying in slips by email
To order by telephone please call HMRC Paying-in Slip Orderline on Tel 01702 366376 or 01702 366314. You will be asked to leave your VAT number on an answer machine and HMRC will then arrange to send you a book of paying-in slips. Once you have received your book of paying-in slips:
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.
Os hoffech gyflenwad o slipiau talu-i-mewn Cymraeg, galwch ein Llinell Gymorth Gymraeg ar 0845 010 0300.
If you would like a supply of Welsh language paying-in slips, then please call our Welsh Language Helpline on 0845 010 0300.
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
You can pay your VAT by standing order if you have been accepted for the following schemes:
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
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 be liable to a surcharge for late payment.
Sort code |
Account number |
Account name |
|---|---|---|
08 32 00 |
11963155 |
HMRC VAT |
If your bank asks for the address of the bank to which payment is being made please use
Citi
Citigroup Centre
Canada Square
Canary Wharf
London
E14 5LB
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.
Check your VAT registration number using HMRC’s registration number checker
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
From 1 April 2010 all VAT-registered traders with a turnover of £100,000 or more (exclusive of VAT), plus any newly registered traders (regardless of turnover) must submit their returns online and pay electronically. You should no longer send your cheques to HMRC by post, instead, you should use one of the electronic payment methods listed elsewhere in this guide.
If you are required to pay by cheque due to your internal operational requirements or by other legislation, please do so using a Bank Giro at a participating bank or building society. For more information on how to do this see the section in this guide 'Paying by Bank Giro'.
If you're not yet required to file online and pay electronically you can still pay by posting HMRC a cheque, if you wish. If you do so there are important changes that take effect from 1 April 2010 which will affect when you pay.
From 1 April 2010 all cheque payments sent to HMRC by post will be treated as being received by HMRC on the date when cleared funds reach HMRC's bank account - not the date when HMRC receive the cheque.
This means you must allow sufficient time for the payment to reach HMRC and clear into HMRC's bank account, no later than the due date shown on your VAT Return. A cheque takes three bank working days to clear. Bank working days are Monday to Friday excluding bank holidays.
To allow for possible postal delays (for which HMRC is not responsible) please allow at least three working days for the cheque payment to reach them and a further three days for the payment to clear HMRC's bank account.
If your cheque payment does not clear by the due date shown on your VAT return, you may be liable to a surcharge for late payment.
However if paying by post please:
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
HMRC recommends that you make your VAT payments electronically using one of the methods described elsewhere in this guide. Electronic payments are safe and efficient, provided you give HMRC an accurate reference number (for example your VAT registration number). In most cases, when paying electronically you will receive up to seven extra calendar days to pay, or if you pay by Direct Debit, ten calendar days.
For more information about payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
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.
The account name you should use is 'HMRC VAT'.
Currency |
International Bank Account Number (IBAN) |
SWIFT Bank Identifier Code (BIC) |
|---|---|---|
Sterling and foreign currencies (including euro) |
GB25CITI08320011963155 |
CITIGB2L |
Note: Where an IBAN is shown you must give this number as well as the SWIFT BIC.
If your bank asks for the address of the bank to which payment is being made please use
Citi
Citigroup Centre
Canada Square
Canary Wharf
London
E14 5LB
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.
Check your VAT registration number using HMRC’s registration number checker
Read more about VAT filing and payment deadlines
Read more about missed VAT deadlines: penalties and surcharges
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
What to do if you can't pay your VAT
