VAT Flat Rate Scheme: How to Pay Your VAT


Once you have submitted your VAT return, you must get your payment over to HMRC.  HMRC sets out a number of ways you can do this, along with differing deadlines depending on how you choose to pay.  Here are some of the common ways you can pay your VAT:

Internet or Telephone Banking 

If you choose to pay by this method you receive an additional 7 days to file & pay your VAT because payments of this nature are generally immediate (unlike a cheque which has to clear).  So a VAT return for the quarter ended 31 March 2018 would be due for online filing & online payment by 7 May 2018 rather than 30 April 2018.  If you wish to pay using this method, then these are HMRC bank details to use:

Account Name: HMRC VAT

Account Number: 11963155

Sort Code: 08-32-00

Bank Address: Barclays Bank Plc, 1 Churchill Place, London.  E14 5HO

Make sure you use your VAT number as your reference when you make the payment so HMRC knows how to allocate your payment.

Direct Debit

By using direct debit, you avoid the need to make a manual payment each time you file a VAT return.  You can set up a direct debit with HMRC for your VAT either at registration or by going to your HMRC VAT Online account.

You need to set up your Direct Debit must set up your online DDI before you submit your next return and at least 2 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, 2 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 3 bank working days before the return is due. For example, if your return is due on Sunday 7 November, 3 bank working days before this is Wednesday 3 November.

If your return is due in less than 2 or 3 bank working days as shown in the examples above then for this return only you will need to pay by a different electronic method.

Debit or Credit Card Online

HMRC accepts payment for VAT by credit or debit card over the internet.  You need to head over to HMRC here and complete their online form where they collect details about your payment, before being taken to payment processing.

HMRC does offer other methods such as Giro or cheque payments, so if the ones above are not suitable then head over to the HMRC website and see if you can find a more suitable method for yourself.

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