How to pay vat bill

  • Written By : Kasra Dash
  • Time : 4 minutes

If you are uncertain on how to pay vat continue reading our detailed blog where we go into full detail on how you can pay vat online, where to find our vat online account details & what your accounting period is for your business.

If your company is registered for VAT (Value Added Tax), you will need to ensure that your vat payments are kept up to date and paid for. If you are late paying your vat your business maybe hit with a HMRC late payment. In this article we’ll explain how to pay your vat bill so you can avoid any late vat payments.

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What are the payment deadlines

Most businesses pay their vat bill either quarterly or annually. This depends solely down to how often you file your vat bill.

Vat returns quarterly / Quarterly payments

If you are planning on paying your vat payments on a quarterly basis then you must make certain you submit you vat payments by one midnight calendar month and seven days at the end of each quarter. If you fail to do so you could get penalised with a HMRC late payment charge.

Annual Payments / Annual accounting scheme

Some businesses opt for using the annual accounting scheme. This scheme allows businesses to submit just one singular VAT bill at the end of the tax year, as opposed to submitting 4 VAT bills. This helps reduce paper work and can also help with budgeting and cash flow management.

The annual VAT deadline falls 2 months after the financial year ends, so you must make certain that your company has paid their vat bill by then either online or telephone banking.

For example if your companies financial year ends 31st of May 2022 then your payment deadline falls submitted your VAT bill by August 7th 2022.

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How to pay your vat bill

If it is your first year being a VAT registered businesses then their are multiple ways to setup your vat payments. The easiest way is to head over to the HM revenue and customs (HMRC) website and login to your business account and setup a direct debit.

You will be able to setup an online payment schedule to take payments out of you debit card once you have added your bank details onto the HMRC website.

How to submit your VAT bill

You are able to submit your VAT bill via the HMRC website (you will need to login to your HMRC’s account) you can log in and enter in your 9 digit VAT registration number, you can find this 9 digit number on your VAT registration certificate.

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How much do you pay for vat?

The standard rate for making vat payments is 20%. Certain items can be charged at a lower rate for example children’s clothes, household fuel (petrol & electricity) is charged at a reduced rate of 5%

Can you pay vat by debit card?

Yes you are able to pay your vat bill pay online or via telephone using a direct debit card.

What interest rates apply for late vat payment to HMRC?

HM revenue applies a 2.75% daily rate on any late VAT bills. This interest rate is applied from the date the payment is due. If you are struggling to pay your vat bill then get in touch today and speak to on of our VAT returns specialists as we will be able to advise you further.

Who is responsible for paying vat?

The person liable to pay the vat due on a transaction is usually the supplier but in some cases it can also be the customer.

So you need to make certain your vat files are kept up to you do this easily by using accounting software are hiring someone to keep your books up to date. Keeping a clean and up to date book allows no room for errors and helps you avoid any VAT penalties.

What methods can be used for vat return payments?

When paying your vat online you are able to pick from any of the following

Credit cards
Corporate credit card
Faster payments (CHAP’s or BACS direct credit)
Direct debit
Online banking
Mobile Banking
Bank or building society
Standing Orders
Bank’s telephone banking service
Bank account transfer to the HMRC’s bank account

You should select your preferred payment method.


If you have any further questions regarding paying vat online, if you have any vat owed, surcharge period or any other questions get in touch with our team today.

We understand that small businesses – medium sized businesses don’t have the time to spend on organising their VAT so take advantage of our team today and let us help you.

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