If you are a VAT registered trader in the UK then by paying vat online you can save time and effort. Anyway, the HM revenue and customs or hmrc vat department has already made it mandatory for all traders with a sales turnover of £100,000 or more and all vat registered traders after April 01, 2010, irrespective of sales to pay their vat online.
Most small businesses are now adopting computers and the internet for running their businesses. This is indeed a time-saving feature since it becomes quite easy to issue vat invoices, calculate vat rates, and even file vat returns quickly. If you have been using several vat online services offered by the hmrc vat department including filing your vat returns online then you will also need to pay your vat online. This method is quicker and more secure since you might otherwise never know when your vat payments have reached the concerned vat department, and might be penalized for late payments due to delays in postal services.
You will certainly need to know all about uk vat and eu vat rules, especially if you import goods from member eu states and sell them in the UK market after charging the applicable vat rates. You can also go in for a vat refund in case vat has already been paid in the country of origin on any services or goods imported by you into the UK. However, if you have trouble in understanding different vat rules in various countries then appointing a capable vat agent with sufficient knowledge on customs and excise rules would ensure smooth payment of all relevant taxes and duties.
Once you start paying vat online then you will surely realize that it is not a difficult task at all and instead saves you a lot of time and effort. You will need to mention your vat registration number as your reference number while also providing other details such as vat sales and purchases for the particular period, vat amounts paid and collected, and the amount of vat, if any, to be paid. You can also utilize several methods to pay your vat online.
You can opt to pay your vat online by credit card, debit card, direct debit, bank giro, chaps transfer, and many other modes that are explained in detail at the hmrc vat website. If you make an online vat payment then you will usually get 7 calendar days over your standard vat return deadline date for the payment to be transferred into the hmrc vat account. This should allow you enough time to calculate and make your vat payments well in time to avoid any late payment surcharge. If you have not yet computerised your business operations then you should certainly do so since this move will certainly help your business to keep track of sales, purchases and taxes at the same time.
If you are a vat registered trader in the UK or in any other eu country then you will surely have the option of making vat payments online. This mode of payment is quick and secure, and you should certainly use it while paying vat online if you want to pay your vat taxes in a safe and seamless manner.