Dates and Deadlines for VAT Payments to HMRC

Importantly, the deadlines for completing your VAT return online and paying any VAT you owe to HMRC are the same. This is something you should pay attention to. You can check this information in your VAT online account if you are unsure about the deadline for filing your VAT return and making your payment.

This will explain it to you:

• When it is time to submit your return for VAT;
• when the money needs to be deposited into the HMRC account.

Returns on a Monthly and Quarterly Basis

If you pay your VAT on a monthly or quarterly basis, the deadline for completing your return and paying any VAT you owe is one calendar month and seven days following the end of the VAT period. This applies regardless of whether you pay your VAT monthly, quarterly, or annually. For the quarter that ended on the 31st of March 2017, for instance, your return must be submitted and payment must be cleared in HMRC's account by the 7th of May 2017. In the same vein, if you are sending in a bill for the month of December 2017, your VAT return and payment must be cleared by the 7th of February in order to be considered on time.

Annual Returns

The VAT Annual Accounting Scheme is utilised by a number of businesses. If you do, your deadline will be different. Because you only receive one payback per year once you have submitted your annual VAT return, the Annual Accounting Scheme is not ideal for firms who frequently reclaim VAT. This is due to the fact that the scheme only allows for one repayment per year.

If you choose to adopt the Annual Accounting Scheme, you are required to do the following:

• Make any necessary advance payments of VAT toward your bill based on your most recent return (or an expected return if you are new to VAT);
• Send in one return for value-added tax each year.

After you have handed in your VAT return, one of the following must be done:

• If you believe that you have paid an excessive amount of VAT, you can ask for a refund.

Methods of Payment for VAT

It is essential that you have a basic understanding of the many options available to you in order to pay your VAT bill. The deadlines for VAT payments are based on the monies that have been received in HMRC's account, and the amount of time it takes for different types of payments to clear is not always the same. Because of this, there is a possibility that you will be required to pay a premium for a late payment of VAT even though you were under the impression that the payment was completed on time. You also need to take into consideration the fact that payments won't be completed on weekends and holidays when banks are closed.

Payable on the same day or the following day are the following methods:

• Online or telephone banking (Faster Payments)
• CHAPS

Clearance of the following forms of payments takes three business days:

• Direct Debit
• BACS
• Only companies that participate in the Annual Accounting Scheme or that are making payments on account are allowed to use standing orders.
• Online through the use of a credit card or direct debit
• Where you bank or where your building society is

Calculating when your VAT payments are due can also be done with the use of a special calculator called the VAT payment deadline calculator.

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