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When are VAT repayments due?

Getting ahead as a VAT-registered business paying more VAT on purchases than it's collecting from sales.

One of the biggest tax considerations for British businesses is Value Added Tax (VAT).

VAT-registered companies must charge it on all goods and services and then pay this to HM Revenue & Customs (HMRC).

The majority of businesses must submit their VAT returns on a quarterly basis — though repayment traders tend to do so monthly, and others choose to do so annually through the VAT Annual Accounting Scheme.

When a VAT-registered business has paid more VAT on purchases than it has collected from sales, it can claim this difference back from HMRC. But the time it takes for HMRC to refund such payments can temporarily leave companies with a sizeable budget deficit. Fortunately, there is a way to get around this cash flow uncertainty.

InstantVAT Refunds

How do you get ahead of VAT payments?

Most businesses face several VAT submission deadlines throughout the year, during which they must pay HMRC any VAT they’ve collected, and then wait for them to reimburse any excess amount paid in the relevant tax period.

This repayment process typically takes anywhere between 5 and 30 days.

With Adsum, however, you needn’t worry about VAT payments impeding your company, as we’ll help you consign VAT repayments delays to the past. We’ll ensure you receive these funds 75% faster, giving you cashflow certainty and allowing you to get on with what you do best.

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Here’s how it works

Costing just 2% of the refund amount, our service gives businesses complete financial certainty at all times of the tax year and is incredibly easy and quick to use.
How it works

1. Create an Adsum account

Signing up takes less than five minutes — enter your details, let us know where you want your VAT refund sent to, and give us access to your government gateway.

How it works

2. Submit your VAT return

You or your accountant submit your VAT return as you normally would.

How it works

3. Get your VAT refund as soon as HMRC verifies it.

It really is that simple.

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For businesses that want to handle their VAT refunds themselves, however, let’s look at some of the key aspects of doing so.

What date do you have to pay VAT?

Returns must be completed within one month and seven days of the relevant period, and payment made at this time.

For instance, a VAT period ending on 30th September will require payment by the 7th of November. That said, if a business registers to pay by direct debit, payments are typically taken three days after the VAT return deadline.

Failing to submit VAT on time can result in financial penalties for a business, depending on the nature of the error and when in the tax year it was made.

How do you know when VAT payments are due?

Businesses unsure when their VAT payments are due can sign in to their online account and tick to receive reminders of their VAT due date.

Alternatively, they can use HMRC’s VAT payment deadline calculator to find out when their deadline for VAT payments is.

When should HMRC pay my VAT refund?

HMRC tries to refund VAT repayments within ten days of a business making a VAT return.

However, it often takes 30 days for this to come through. At this point, the repayment will go straight to a company’s bank account should HMRC have its details — otherwise, the business will receive a cheque.

By relying on Adsum, however, companies can expedite these refunds and ensure they’re not left out of pocket for an extended period of time. Sign up to our InstantVAT Refunds service today and prevent VAT payments from getting in the way of your operations.

InstantVAT Refunds

Understanding VAT