Dates and Deadlines for VAT Payments to HMRC

It is important to note that the deadlines for submitting your VAT return online and paying any VAT you owe to HMRC are the same. If you are unsure when your VAT return and payment deadline is, you can check this information in your VAT online account. It is important to ensure that you meet these deadlines in order to avoid any potential penalties or fines.

It is also a good idea to keep track of your VAT return and payment deadlines in advance to ensure that you have sufficient time to prepare and submit your return and make any necessary payments

Monthly and Quarterly Returns

If you pay your VAT on a monthly or quarterly basis, the deadline for submitting your return and paying any VAT you owe is one calendar month and seven days after the end of the VAT period. For example, if the quarter ending on 31 March 2024, your VAT return must be submitted and payment must be cleared in HMRC’s account by 7 May 2024.

Similarly, if you are submitting your bill for the month of December 2024, your VAT return must be submitted online and payment must have cleared by 7 February. It is important to adhere to these deadlines in order to avoid any potential penalties or fines. It is a good idea to keep track of your VAT return and payment deadlines in advance to ensure that you have sufficient time to prepare and submit your return and make any necessary payments

Annual Returns

If your company uses the VAT Annual Accounting Scheme, your deadlines for submitting your VAT return and paying VAT will be different. This payment method may not be suitable for businesses that frequently reclaim VAT, as you will only receive one repayment per year after submitting your annual VAT return.

If you use the Annual Accounting Scheme, you must

• Make advance VAT payments towards your bill based on your last return (or estimated return if you’re new to VAT);
• Submit one VAT return a year.

Once you have submitted your VAT return, you have to either:

• Make a final payment to settle any VAT you owe;
• Apply for a refund if you have overpaid on your VAT bill.

VAT Payment Methods

It is essential to be aware of the different methods of paying your VAT bill and the associated deadlines. It’s important to note that VAT payment deadlines refer to the time when the funds have arrived in HMRC’s account, and different payment types may take different amounts of time to clear.

This means that you may incur a surcharge for a late VAT payment even if you thought you had made the payment on time. It is also important to consider weekends and bank holidays, as payments will not be processed during these times.

Same or next day payments can be made by:

• Online or telephone banking (Faster Payments)
• CHAPS

The following payment types take three days to clear:

• Direct Debit
• BACS
• Standing order (only to be used by businesses using the Annual Accounting Scheme or making payments on account
• Online by direct debit or credit card
• At your bank or building society

You can also use the VAT payment deadline calculator to determine when your VAT payments are due.

Conclusion

Meeting dates and deadlines for VAT payments to HMRC is crucial for a number of reasons. Firstly, failing to pay your VAT bill on time can result in late payment penalties and interest charges, which can significantly increase the amount you owe. Additionally, failing to pay your VAT bill on time can damage your business’s reputation and may result in negative consequences such as legal action.

It is also important to submit your VAT returns on time as failure to do so can result in additional penalties and fines. By ensuring that you meet all VAT payment dates and deadlines, you can avoid these potential problems and ensure that your business remains in good standing with HMRC.

Read more: Paying VAT on unpaid invoices