It’s important to pay your VAT bill on time – and delays could mean you getting hit with a penalty. So paying your bill by Direct Debit is one way to make this payment process easier for you and your finance team.
Set up your VAT online account
When you register for VAT, you or your tax agent must set up a VAT online account – your Government Gateway account that you’ll use to log in to all of HMRC’s services.
When you set up your VAT online account, you’ll be given the option to choose Direct Debit as a payment option. Just follow the set-up steps and your VAT bill will be taken directly from your business bank account on the relevant day of the month.
When to set up your Direct Debit
Your Direct Debit information must be set up at least three working days before your submit your first VAT return – if you don’t do this then your payment won’t be taken in time.
The advantage of paying by Direct Debit
With your Direct Debit set up, you never have to remember to pay your VAT bill – it happens automatically on the date you’ve set up.
Usually speaking, VAT payments must be paid by the 7th of the month following the prior month end. One benefit of paying by Direct Debit is that you can choose to pay on the 10th or 12th of the month, buying you a little more time to pay, and improving your cash flow situation.
If you want help to set up Direct Debit payments for your VAT bill, give us a call on 01454 300 999, or drop an email to info@fd-works.co.uk
Find out more about the FD Works’ approach to finance at fd-works.co.uk