Will Pandle work out my VAT bill for me?

Oh yes! You can keep Making Tax Digital approved records in Pandle, and submit your VAT return directly to HMRC – all from the same software, and all on the Free plan.

When are my VAT payments due?

VAT payments are usually due one month and seven days after the end of your VAT accounting period. For instance, if your VAT quarter ends on 31st March, your payment must reach HMRC by 7th May.

How can I pay my VAT bill?

You’ll be thrilled to know there are lots of ways to pay. Some common ways include direct debit, credit card, BACS, CHAPS and Faster Payments. Most reach HMRC on the same day, with some varying up to 3 working days. For example, this will be the case if you use BACS or you’ve set up a direct debit for the first time.

Can I set up a payment plan for VAT?

Yes, it’s possible to set up a Time to Pay arrangement with HMRC – but you need to let them know as soon as possible that you’re struggling to meet your VAT payments. The sooner you do, the more likely they are to set up a payment plan with you.

How do I pay VAT if I’m on the VAT Annual Accounting Scheme?

Under the VAT Annual Accounting Scheme, you make regular advance payments (either monthly or quarterly) during the year, then submit one annual VAT Return along with a final balancing payment. All payments must be made electronically.

Estimate your VAT bill

VAT Liability Calculator

Please select a VAT scheme

Standard VAT Flat Rate Scheme

VAT paid on purchases (last 12 months)

VAT collected (or would have been)

How do I work out how much VAT I owe?

Your VAT bill is worked out by calculating the difference between the VAT you charge on sales – otherwise known as your output VAT – and the VAT you pay on business purchases, which is your input VAT.

Don’t panic. We know you’re a business owner and not a mathematician (unless that happens to be your line of work). Our VAT liability calculator will help you estimate how much your VAT bill is going to be.

Which VAT scheme should I use?

As long as your business meets the criteria, it’s entirely up to you which VAT scheme you use! Use our calculator to compare your VAT bill using the standard scheme versus the VAT Flat Rate Scheme to understand which might be more efficient for you.

There are other points to consider beyond the numbers, so our guide to different VAT schemes explains how it works in a bit more detail.

Will I always owe VAT to HMRC?

No! It depends how much VAT you charged or paid in the period of time covered by your VAT return. If you collected more VAT from your customers than you paid during the same time period then yes, you’ll need to pay the difference to HMRC.

If not, then it’s your lucky day and you’ll actually be able to reclaim the difference. It’s like finding old birthday cards with money still in them. Kinda.

VAT CALCULATOR

FAQs

Will Pandle work out my VAT bill for me?

Oh yes! You can keep Making Tax Digital approved records in Pandle, and submit your VAT return directly to HMRC – all from the same software, and all on the Free plan.
When are my VAT payments due?

VAT payments are usually due one month and seven days after the end of your VAT accounting period. For instance, if your VAT quarter ends on 31st March, your payment must reach HMRC by 7th May.
How can I pay my VAT bill?

You’ll be thrilled to know there are lots of ways to pay. Some common ways include direct debit, credit card, BACS, CHAPS and Faster Payments. Most reach HMRC on the same day, with some varying up to 3 working days. For example, this will be the case if you use BACS or you’ve set up a direct debit for the first time.
Can I set up a payment plan for VAT?

Yes, it’s possible to set up a Time to Pay arrangement with HMRC – but you need to let them know as soon as possible that you’re struggling to meet your VAT payments. The sooner you do, the more likely they are to set up a payment plan with you.
How do I pay VAT if I’m on the VAT Annual Accounting Scheme?

Under the VAT Annual Accounting Scheme you make regular advance payments (either monthly or quarterly) during the year, then submit one annual VAT Return along with a final balancing payment. All payments must be made electronically.