When are VAT Returns due?
Paying your VAT Return on time is really important to avoid any penalties from HMRC.
Your VAT Return payment deadline can be found in your HMRC VAT online account or MTD software, and it will vary between businesses. You can also find out when the payment must clear in HMRC’s account. The deadline for submitting your return and making your payment is usually the same.
Monthly and quarterly returns
The deadline for submitting monthly and quarterly VAT Returns, and making your payment, is one calendar month and seven days after the end of your VAT period.
Annual returns
If you use the VAT Annual Accounting Scheme, you submit one VAT Return annually. This will be due 2 months after the end of your 12 month accounting period.
How much VAT will I pay annually?
You make advance payments towards your VAT bill, which is usually based on your last return unless you’re new to VAT. HMRC will tell you when they’re due, and how much they will be.
Your payments are either:
- 10% of your estimated VAT bill (monthly payments)
- 25% of your estimated VAT bill (quarterly payments)
Then, you make one final payment of VAT by paying difference between your advance payments and your actual VAT bill. This means you can apply for a refund if you overpaid your bill.
It’s worth keeping in mind that you will only get one refund a year. So, if you regularly reclaim VAT this scheme might not be a good fit for you.
How do I pay VAT?
You need to pay your VAT to HMRC electronically. The most common methods of payment are direct debit or internet banking. You can also pay at your bank, but you will need to order paying-in slips from HMRC. These could take up to 6 weeks to arrive.
If you don’t pay on time you can be subject to a penalty charge. So, if you’re unable to pay your bill, it’s important to contact HMRC as soon as possible.
Check out our online VAT calculator
Making Tax Digital
As of April 2019, VAT-registered businesses with a turnover of more than £85,000 are required to use the Making Tax Digital (MTD) service to keep records digitally and use accounting software to submit their VAT Returns.
Read more about Making Tax Digital
MTD software makes VAT Returns simple
If you’re looking for MTD software that can reduce mistakes and save you time, then Bokio is a great solution. Here’s why:
- Automated MTD VAT Returns and reporting generated from your bookkeeping
- Submit your VAT Return in just a few clicks and record your payment with your accounting
- Bookkeeping software with bank feeds, bulk recording, bookkeeping templates to make recording transactions quick and easy
- Integrated invoicing software to create, send, track and record invoices
If you’re curious about Bokio:
Create your account in 2 minutes
Note: This article was updated August 2023
