Struggling with how to pay your VAT bill to HMRC? Unsure about the correct VAT payment reference, deadlines, or bank details? This straightforward guide outlines the steps to pay VAT to HMRC in 2025. Learn about Cumbernauld vs. Shipley accounts, payment methods, and how to avoid penalties using accurate HMRC VAT bank details.
Why VAT Payment Accuracy Matters in 2025
Every quarter, over 2.7 million UK businesses submit VAT returns, but thousands get penalized for late or incorrect payments.
Avoid this by understanding:
- Where to send your VAT payment (HMRC bank details)
- How to structure your payment reference
- When HMRC expects the funds to arrive
You’ve already calculated your VAT — now let’s make sure it lands in the right HMRC account.
How to Pay VAT to HMRC in 2025: Step-by-Step UK Guide
Step 1: Choose the Right Payment Method
HMRC accepts several options. Here are the most used:
| Payment Method | Processing Time | Best For |
|---|---|---|
| Faster Payments | Same-day / Next-day | Small businesses & speed |
| CHAPS | Same-day | Large VAT bills |
| BACS | 3 working days | Scheduled payments |
| Direct Debit | Auto on deadline | Regular filers (set up in advance) |
| Debit/Corporate Card | Instant | Low VAT amounts |
Before making your VAT payment, ensure you’ve applied the correct rate to your sales and purchases.
Check the Current VAT Rates for 2025 to avoid mistakes.
Step 2: Use the Correct HMRC VAT Bank Details
Use the HMRC Cumbernauld account unless told otherwise.
| Field | Value |
|---|---|
| Account Name | HMRC VAT |
| Sort Code | 08-32-10 |
| Account Number | 11963155 |
| Bank | Barclays Bank |
| IBAN | GB62BARC08321011963155 |
| SWIFT/BIC | BARCGB22 |
HMRC’s central VAT bank is referred to as the Cumbernauld office in official documentation. If instructed to use the Shipley office, replace the account number with 12001039 (same sort code).
Step 3: Format Your Payment Reference
Your payment reference must be your 9-digit VAT registration number, with no spaces or hyphens.
Example: 123456789
Mistyped VAT references are a common reason for payments to be misallocated. Double-check this.
VAT Payment Deadlines 2025: When to Pay HMRC
To stay compliant and avoid penalties, understand the official VAT payment deadlines set by HMRC in 2025.
Standard Quarterly VAT Periods for LTDs and LLPs
| Quarter | Period Covered | Submission & Payment Deadline |
|---|---|---|
| Q1 | Jan 1 – Mar 31 | 7 May 2025 |
| Q2 | Apr 1 – Jun 30 | 7 August 2025 |
| Q3 | Jul 1 – Sep 30 | 7 November 2025 |
| Q4 | Oct 1 – Dec 31 | 7 February 2026 |
Note: VAT returns and payments are due one calendar month and 7 days after the end of each accounting period.
Other Important 2025 UK Tax Dates
| Date | Deadline Details |
|---|---|
| 31 Jan 2025 | Self Assessment return & 1st payment on account due |
| 7 Feb 2025 | Q4 2024 VAT return deadline |
| 5 Apr 2025 | End of the 2024/25 tax year |
| 7 May 2025 | VAT deadline for Q1 2025 |
| 6 Jul 2025 | P11D Benefits filing deadline for employers |
| 31 Jul 2025 | 2nd payment on account deadline |
| 7 Aug 2025 | VAT deadline for Q2 2025 |
| 1 Oct 2025 | Corporation Tax payment due (for Dec 2024 year end) |
| 5 Oct 2025 | Deadline to notify HMRC if newly self-employed or crossing £1K threshold |
| 31 Oct 2025 | Paper tax return filing deadline for 2024/25 |
| 7 Nov 2025 | VAT deadline for Q3 2025 |
| 31 Dec 2025 | Corporation tax return due for the Dec 2024 financial year |
| 31 Jan 2026 | Digital Self-Assessment filing deadline for 2024/25 |
Automate Your VAT with Tools
Avoid payment stress by using reliable tools that calculate, track, and remind you about VAT payments, especially when deadlines approach quickly.
- VATCalc.Onl: Instantly calculate your UK VAT owed, based on the correct rate. Ideal for pre-filing checks and payment planning.
Use the VAT Calculator before you pay HMRC. - Link My Books – Automatically syncs with Shopify and Xero to match your sales data with VAT liabilities.
- Xero / QuickBooks – Helps prepare and file your VAT return while displaying payment timelines.
- A2X – Reconciles Shopify payouts with tax obligations and keeps everything clean for your accountant.
All these tools, including VATCalc.Onl support Making Tax Digital (MTD) and integrate seamlessly with HMRC-compliant processes.
Common Mistakes to Avoid When Paying VAT
- Using the wrong account number
- Typing the VAT number incorrectly
- Sending payment too late (especially with BACS)
- Forgetting to check your payment cleared
- Using the wrong reference for group registrations
Always keep confirmation of payment for at least 6 years as per HMRC compliance rules.
FAQs
Yes, you can pay HMRC VAT from a personal bank account. However, it’s recommended to use your business bank account to maintain clean financial records and ensure traceability during audits. It also aligns better with HMRC’s best practices and avoids confusion if you’re ever reviewed.
You should contact HMRC immediately if you can’t pay the full VAT. They may offer a Time to Pay arrangement, allowing you to pay your VAT in monthly installments. Acting early prevents interest from accumulating and reduces the risk of penalties or enforcement.
Yes, CHAPS payments usually come with a bank fee. The cost is typically between £20 and £25, depending on your banking provider. While it’s more expensive, CHAPS is ideal for making same-day payments close to the VAT deadline.
You must register for VAT within 30 days of exceeding the threshold. The registration trigger is when your VAT-taxable turnover crosses £90,000 over the last 12 months. Failing to register in time could lead to penalties and backdated VAT liabilities.
Yes, you need MTD-compliant software to file VAT returns. HMRC requires all VAT-registered businesses to use Making Tax Digital (MTD) software such as Xero, QuickBooks, or FreeAgent. These tools help you maintain digital records and submit VAT returns accurately and on time.
Final Thoughts
Paying VAT to HMRC doesn’t have to be stressful — but it must be accurate, timely, and well-documented. With a clear understanding of your VAT periods, correct payment references, and the appropriate HMRC bank details (Cumbernauld or Shipley), you can stay fully compliant and avoid costly penalties.
Whether you’re a limited company, LLP, or sole trader, the key to avoiding fines lies in meeting your quarterly VAT payment deadlines (1 month + 7 days after period end), using MTD-compliant software, and verifying your payments are processed properly through Faster Payments, BACS, CHAPS, or Direct Debit.
Use trusted tools like Xero, QuickBooks, A2X, or Link My Books to automate calculations, sync sales channels like Shopify or Amazon, and ensure your VAT returns and payments are never late.