Paying VAT online electronically
Paying VAT online electronically
Payment on time
You need to pay on time quarterly to avoid penalties.
Pay VAT online
The due electronic online payment date is funds in HMRC bank account one month and seven days after the end of the VAT quarter. You need to be sure that your chosen method of payment will meet the deadline.
Short of time?
on or before the due date. Wordlpay it is counted as paid the same day; although the bank processing time could be three to five days.
This can save you a late payment penalty.
Need more time? Time to pay
A documented arrangement can save you a late payment penalty.
Please treat timings shown below, except WorldPay, as for guidance only.
HMRC does not operate the Faster Payments Service FPS, which is offered by some banks. Electronic payments will normally take three bank working days to reach the HMRC account.
Pay by Direct Debit
If your cash-flow is sufficiently robust you can pay by direct debit which will be taken a further three days later on the 10th. Allow five bank working days for initial setup before the first payment collection date. We can do this for you or you can find out how on: http://www.hmrc.gov.uk/payinghmrc/vat.htm#2
HMRC's bank account details and references
Sort code: 08 32 00
Account number: 11963155
Account name: HMRC VAT
You need to enter your VAT number without gaps.
Payments from abroad quote:
International Bank Account Number (IBAN) GB25CITI08320011963155
SWIFT Bank Identifier Code (BIC): CITIGB2L
Online business banking
Paying VAT by internet, telephone banking or pay by BACS Direct Credit
Normally takes three bank working days for payment to reach HMRC
Paying VAT by debit card or credit card over the internet
(American Express Amex or Diners Club are not accepted)
No credit cards are accepted after 13th January 2018
Debit cards no charge
Credit card payments are subject to a non-refundable transaction fee according to the card used.
Worldpay it is counted as paid the same day; although the bank processing time could be three to five days.
The HMRC Help Line telephone number has been discontinued.
To go into HMRC Worldpay: https://www.tax.service.gov.uk/pay-online/vat
Paying VAT by CHAPS transfer
Same day provided you initiate payment within the time specified by your bank, usually between 9.00 am and 3.00 pm, but do this as early as possible in the day in case the bank is particularly busy.
Paying VAT by Bank Giro
It is recommended by HMRC that you apply for them 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.
Time to pay:
HMRC Business Payment Support Service Help Line 0300 200 3835Payment plan
There is a formal initiative and time to pay helpline for businesses who anticipate needing time to pay. By entering into a time to pay agreement in advance of the due date for VAT and income tax, and adhering to the terms of the agreement, you can avoid VAT late payments penalties and income tax late payment penalties . VAT and tax returns must be filed on time to avoid late filing penalties. Contact Business Payment Support Help Line 0300 200 3835 and the full details are at
You then need to contest and appeal any notices you should subsequently receive. Time to Pay arrangement are often not advised to other parts of HMRC. Ignoring subsequent notices can result in bailiff action.
The scheme started November 2008 and by the end of June 2011: 444,400 proposals were agreed (95% of proposals) and 23,300 were refused. It is estimated that 87% of tax agreed under these arrangements had been paid by June 2011; being £6.7 billion.
It was announced in July 2011 that no further statistics will be issued but "There are no plans to close the Business Payment Support Service or change HMRC's Time to Pay policy or approach".
You can carry tax losses back into previous years.
If you are incurring tax losses in the current year these can be taken into account in Business Payment Support arrangements in respect of overdue and unpaid profit taxes.
You need reliable accounting records to demonstrate this to HMRC.