Direct Debit

Use your VAT online account to set up a Direct Debit.

Set up the Direct Debit at least 3 working days before you submit your online VAT return, otherwise the payment will not be taken from your bank account in time.

Once you’ve set up the Direct Debit, payments will be collected automatically from your bank account 3 working days after the payment deadline on your VAT return.

If you file your VAT return late, your payment will be taken 3 days after you file the return.

You cannot pay by Direct Debit if you have a ‘payments on account’ arrangement.

Getting VAT repayments

The bank account details you use to set up your Direct Debit will not be used for VAT repayments.

To get VAT repayments paid into your bank account, update the registration details in your VAT online account. Otherwise HMRC will send you a cheque.

Annual Accounting Scheme

Businesses that use the Annual Accounting Scheme can only set up an automatic Direct Debit online for balancing payments.

You can set up a Direct Debit for regular payments using form VAT 623.