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HMRC internal manual

VAT Payments on Account Regime

Alternatives to paying POA instalments: Actuals

On actuals, instead of paying an instalment amount that is set by us, a business may opt to pay its true liability for the preceding month of any instalment due date. The business must still submit a quarterly return and the payments for the quarter must equal the value of the declared tax.

A business must write to the POA Team (see VPOA1500) to request actuals. If the request is accepted, the business must continue to declare and pay actuals for a minimum period of one year. If, after the year has elapsed, the business requests to pay normal instalments, it must write again and confirm that it no longer wants to pay actuals.

This is covered by VAT (Payments on Account) Order 1993, article 12A.

Businesses that opt to pay actuals must still pay electronically and are not eligible for any extension to due date.