How to Pay Your VAT to HMRC

Find out how to pay your VAT to HMRC, the methods available and what happens if you miss the payment deadlines.

Updated 18 August 2021

Options for Paying Your VAT to HMRC

Once you have filed your VAT return through your bookkeeping system (as required by making tax digital), you need to make sure you pay HMRC any VAT you owe. Your system will tell you how much VAT you need to pay or you’ll find it in Box 5 of your VAT return.

There are a number of ways HMRC will accept your VAT payment but the easiest way is to do a bank transfer. Immediate Payments can be made by:

  • Online Banking;
  • Telephone banking;
  • CHAPS.

You’ll need HMRCs bank details which are:

Sort code: 083200
Account number: 11963155
Account name: HMRC VAT

You must use your 9 digit VAT number as your payment reference so HMRC can allocate your money correctly.

Other ways you can pay are below, but these typically take up to 3 days to clear, so you need to make sure you leave enough time for the money to reach HMRC for the VAT deadline:

  • Direct debit (but you must have your direct debit set up 7 days before your VAT payment deadline);
  • Debit card;
  • At your bank or building society.

What Happens if You Miss the VAT Payment Deadline?

It is your responsibility to make sure that your VAT payment reaches HMRC by the payment deadline. If your payment is late, HMRC will charge interest on the outstanding amount at 2.75%. If you don’t pay within 30 days, further interest will be charged on the VAT due from the date of the notice and HMRC will continue to charge interest for as long as the money remains outstanding, up to a maximum of 2 years.

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About Anita Forrest

Anita Forrest is a Chartered Accountant, spreadsheet geek, money nerd and creator of www.goselfemployed.co - the UK small business finance blog for the self-employed community. Here she shares simple, straight-forward guides to make self-employment topics like taxes, bookkeeping and banking easy to understand.