Once you've submitted your VAT Return and know how much you owe, you'll need to arrange payment to HMRC.
There are several ways to pay your VAT bill, including Direct Debit, bank transfer and debit or corporate credit card. In this guide, we'll explain each option, what information you'll need and how long different payment methods can take.
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What Do You Need to Pay Your VAT Bill?
Before making a payment, you'll need your 9-digit VAT registration number. You'll find this in your VAT online account or on your VAT registration certificate.
Make sure you use the correct VAT registration number as your payment reference, without any spaces. If you use the wrong reference, your payment could be delayed or allocated to a different tax bill.
Pay Your VAT Bill by Direct Debit
You can set up a Direct Debit through your VAT online account. Once it's in place and you've submitted your VAT Return, HMRC will automatically collect the amount you owe from your bank account.
Payments are normally collected three working days after the payment deadline shown on your VAT Return.
If you're setting up a VAT Direct Debit for the first time, HMRC says you should do this at least three working days before submitting your VAT Return. If it isn't set up in time, the payment won't be collected automatically and you'll need to pay using another method.
Pay Your VAT Bill by Bank Transfer
You can also pay HMRC directly from your bank account using Faster Payments, CHAPS or Bacs.
For payments from a UK bank account, use the following HMRC VAT bank details:
| Account Detail | HMRC VAT Details |
| Sort code | 08 32 00 |
| Account number | 11963155 |
| Account name | HMRC VAT |
| Payment reference | Your 9-digit VAT registration number |
Again, make sure you enter your VAT registration number correctly and don't include any spaces.
Pay Your VAT Bill by Debit or Corporate Credit Card
You can pay your VAT bill online using a personal debit card, corporate debit card or corporate credit card.
There's no fee when paying by personal debit card. However, HMRC charges a non-refundable fee when you use a corporate debit or corporate credit card.
You can't pay your VAT bill using a personal credit card.
When paying by card, HMRC accepts your payment on the date you make it rather than the date it reaches their account, including weekends and bank holidays.
How Long Does a VAT Payment Take?
How long you need to allow for your VAT payment depends on the method you choose.
| Payment Method | Typical Timing |
| Faster Payments | Usually the same or next day, including weekends and bank holidays |
| CHAPS | Usually the same working day if paid within your bank's processing times |
| Bacs | Usually 3 working days |
| Direct Debit | Automatically collected 3 working days after the payment deadline shown on your VAT Return |
| Debit or corporate credit card | Accepted by HMRC on the date you make the payment |
If you're paying close to your deadline, check the processing time for your chosen method beforehand. HMRC also recommends checking any transaction limits with your bank.
How Do You Know HMRC Has Received Your VAT Payment?
You can check your VAT online account to view your payments and see how much VAT you currently owe.
Don't worry if a payment doesn't appear immediately. Depending on the payment method, it can take some time for the payment to reach HMRC and be reflected in your account. You can also check your bank account to confirm that the payment has left your account.
What If You Pay Using the Wrong VAT Reference?
When paying your VAT bill, you should use your 9-digit VAT registration number without any spaces as the payment reference.
If you enter the wrong reference, your payment could be delayed or used to pay a different tax bill you owe. If this happens, contact HMRC's VAT general enquiries and ask for the payment to be moved to the correct bill.
When Does Your VAT Bill Need to Be Paid?
For most businesses, your VAT Return and payment are due one calendar month and seven days after the end of your VAT accounting period.
Different arrangements can apply depending on how you account for VAT. Read our guide to VAT payment deadlines for a full breakdown.
What Happens If You Pay VAT Late?
If you don't pay your VAT bill on time, HMRC can charge late payment interest and, depending on how long the amount remains outstanding, late payment penalties.
Read our guide to what happens if you miss the VAT deadline for the current penalty rules and what to do if you're unable to pay.
Need Help With Your VAT?
Managing VAT can take up valuable time, particularly as your business grows or your VAT affairs become more complicated.
Our VAT accountants can help with VAT Returns, payments and ongoing compliance, making sure you understand what you owe and when.
Get in touch with Ryans to discuss your VAT requirements.