When purchasing goods or services, Value Added Tax (VAT) is a mandatory tax that must be paid. If you operate a business, you might have an obligation to register for and collect VAT.

Companies that generate a turnover of over £85,000 (which is known as the VAT registration threshold) are required to register for VAT, charge VAT on the goods and services they sell, and pay this amount to HMRC when filing their quarterly return.

Your business is assigned a distinctive nine-digit number by the government, which begins with ‘GB’. This number, known as the company number, is exclusively allocated to VAT-registered businesses and is featured on your registration certificate.

The certificate also specifies the date when your company crossed the registration threshold and the deadline for submitting your initial VAT return.

By accessing your VAT online account through the Government Gateway, you can verify the deadlines for submitting your VAT Return and making payments.

The information available in your VAT online account includes the dates by which you must submit your VAT Returns and the dates by which payments should be received and processed by HMRC.

Typically, the deadline for submitting your VAT Return and making payments are identical and are determined as one month and seven days after the end of your accounting period.

For instance, if your VAT period concludes on March 31st, the payment for the owed VAT must be made by May 7th. However, if you choose to pay through direct debit, the payment is generally withdrawn three days after the VAT return deadline.

To find out the deadline for making your VAT payment for the ongoing accounting period, you can check the HMRC website. However, if you make payments on account or participate in the annual accounting scheme, you won’t be able to utilize this calculator. For submitting your VAT return and maintaining digital records, it’s advisable to use an accounting software provider that is approved by the authorities.

As a business owner, you’re required to submit VAT returns to HMRC periodically – monthly, quarterly, or annually. These returns provide a summary of the VAT charged on sales and the VAT paid on expenses during the specified timeframe. In case the VAT collected surpasses the VAT paid, you must pay the balance to HMRC. Conversely, if the VAT paid is greater, HMRC will reimburse you for the difference.

When it comes to paying your taxes to HMRC, you can only do so through direct debit or internet banking; they do not accept cheque payments. If you encounter any difficulties while making payments, it’s crucial to get in touch with them immediately.