How to pay your VAT bill
Written by Akhtar Rana, FAIA · Last reviewed
Your VAT return and your VAT payment are due on the same day: one calendar month and 7 days after the end of your accounting period. And unlike Corporation Tax, that deadline does not move for weekends or bank holidays. The money must reach HMRC on or before it, whatever day of the week it falls on.
Figures are correct at the date of review. Always check GOV.UK for the latest.
The deadline
Most businesses file quarterly. One calendar month and seven days after the quarter ends.
Quarter ending 31 March means return and payment due by 7 May.
Quarter ending 30 June means due by 7 August.
The same date for both. This is the opposite of Corporation Tax, where the payment is due three months before the return. Two taxes, two completely different rules, and people get caught by both.
The weekend rule is different too, and it catches people
Corporation Tax: if the deadline is a weekend, pay on the last working day before.
VAT: the deadline holds. Your payment must reach HMRC on or before the deadline, even if it falls on a weekend or bank holiday.
So allow for clearing time. Bacs takes three working days. If your VAT deadline is a Monday, a Bacs payment started on Friday will not arrive in time.
You must file even if you owe nothing
If you are VAT registered, you must submit a return every period, even if there is no VAT to pay and none to reclaim. A nil return is still a return, and not filing it is still late.
How to pay
Direct Debit is the safest, because HMRC collects it automatically after the deadline and you cannot be late by forgetting. Set it up at least three working days before your first payment is due.
Other methods: approve a payment through your online bank account, online or telephone banking (Faster Payments or CHAPS for same or next day, Bacs for three working days), debit or corporate credit card online, at your bank or building society, or standing order (annual accounting scheme only).
Allow enough time for the payment to clear. The deadline is when the money must be in HMRC's account, not when you press send.
Getting a VAT repayment
HMRC does not use your Direct Debit details to pay you back.
If you are due a repayment and have not given HMRC your bank details separately, they will send you a cheque. In 2026.
Fix this once: update the registration details in your VAT online account, and repayments arrive by bank transfer instead.
What late filing and late payment cost now
The old VAT default surcharge is gone. For accounting periods starting on or after 1 January 2023 it was replaced by two separate systems: penalty points for late returns, and percentage penalties for late payment. They run independently, so a late return and a late payment can both bite in the same period.
Late returns: penalty points
You get one penalty point every time a return is late, including nil and repayment returns. You do not pay anything until you hit the points threshold, and the threshold depends on how often you file:
- Quarterly returns: 4 points
- Monthly returns: 5 points
- Annual returns: 2 points
Reach the threshold and you pay a £200 penalty, then a further £200 for every late return while you stay at the threshold. Your first return after registering and your final return after cancelling are exempt.
Late payment: percentage penalties
Pay within 15 days of the due date and there is no penalty. After that:
- First penalty: 3% of the VAT still outstanding at day 15, plus a further 3% of whatever is still outstanding at day 30.
- Second penalty: from day 31, charged daily at an annual rate of 10% on the balance that is still outstanding, until you pay it off.
Late payment interest runs on top of all this, from the day after the due date until the day you pay.
If you cannot pay, contact HMRC before the deadline. Time to Pay exists, and it is far easier to arrange before you have defaulted than after.
Not registered yet?
If your taxable turnover is approaching £90,000, read how to register for VAT first. It covers the threshold, the deadlines, and the forward-look test that catches people the moment they sign a big contract.
Akhtar Rana, FAIA
Akhtar is the founder of Xpert Tax Accountants and a Fellow of the Association of International Accountants, holding an AIA practising certificate. He works with business owners across Greater Manchester and the rest of the UK.
Verify his membership on the AIA register →
Xpert Tax Accountants is regulated by the AIA. We are not authorised by the Financial Conduct Authority and do not give investment, pension or insurance advice.
Xpert Tax Accountants is regulated by the Association of International Accountants. We are not authorised or regulated by the Financial Conduct Authority and we do not give investment, pension or insurance advice, or arrange financial products. Our content is general information about UK tax, not advice for your circumstances, and no responsibility is accepted to any person acting on the basis of it.
Paying VAT: frequently asked questions
When is my VAT payment due?+
One calendar month and 7 days after the end of your accounting period. Same deadline as the return.
What if the deadline is a weekend?+
It still applies. The payment must reach HMRC on or before it. Allow clearing time.
Do I have to file if I owe no VAT?+
Yes. A nil return is still required.
What is the safest way to pay?+
Direct Debit. HMRC collects it and you cannot forget.
Why did HMRC send me a cheque?+
Because they do not have your bank details for repayments. Direct Debit details are not used for refunds. Update them in your VAT online account.
Related and next steps
Want VAT off your plate?
If you would rather someone else prepared the return, watched the deadline and told you what to pay, book a free consultation. No obligation, no sales pressure.