Making VAT payments to HMRC is pretty simple. Learn what the options are and how paying VAT online is quick and easy.
Choose from six methods for paying your VAT online.
Two of the methods (the first two outlined below) will get your payment there fast – either the same day or the next day. The other methods require three days processing time, so you need to leave yourself enough time before the due date.
Spoiler alert: The easiest way to pay VAT online is direct debit - HMRC does most of the work.
You make the payment through your bank’s online or telephone banking service. Payments done this way usually get to HMRC the same or the next day, even if it’s a weekend or bank holiday.
If your bank offers CHAPS (Clearing House Automated Payment System), you can use it to pay VAT online. The CHAPS system guarantees same-day payment as long as instructions are received by 2pm on a working day. It costs between £25 and £30 for each payment so it’s best suited to paying large amounts.
You can set up a free direct debit through your HMRC VAT online account . Payments are taken automatically from your bank account three working days after the due date on your VAT return, and then take three days to process. You just set it up and forget it. Well almost – you need to remember to check you have enough money in your bank account.
With a direct debit, HMRC pulls the VAT owed from your account automatically. With a BACS direct credit (or bank transfer) you push it to HMRC from your bank account each time. It’s a bit like a slower version of using online banking as it takes three days. You first need to sign up for BACS with your bank and have a BACS Service User Number.
You can pay your VAT online through the HMRC BillPay service with a personal or business debit card or a business credit card. Personal credit cards aren’t accepted. Business credit and debit cards are charged a small fee.
Standing orders are only available to businesses using the Annual Accounting Scheme When you apply for this scheme, you can ask to pay by standing order and get approval from HMRC. Standing orders are only suitable for fixed VAT payment amounts, not variable ones.
Here’s what you need to pay VAT online depending on the method you choose:
Online/telephone banking, CHAPS, and BACS: Make VAT payments through your bank (or a BACS-approved bureau). Have your 9-digit VAT registration number and HMRC sort code, account number, and account name handy.
Direct debit: Set up direct debits through your HMRC online account and have your bank details on hand. Make sure it’s done at least three days before you submit your first return online. Then let HMRC do the rest each payment period.
