HM Revenue & Customs

Direct Debit

Your bank/building society: HM Revenue & Customs (HMRC) can only collect payments by Direct Debit (DD) if your bank/building society accepts the DDI and the account is a sterling account registered in the UK. These bank details will only be used to collect your Direct Debit payment. If you want VAT repayments to be paid directly into your bank account please use the 'Change registration details' service to give us your bank details.

How much time to allow: You must set up your Direct Debit Instruction (DDI) before you submit your next return and at least 2 bank working days before the return is due when the due date falls on a weekday. For example, if your return is due on Tuesday 7 September, 2 bank working days before this is Friday 3 September.

If your return due date falls on a weekend or bank holiday you will need to set up your DDI at least 3 bank working days before the return is due. For example, if your return is due on Sunday 7 November, 3 bank working days before this is Wednesday 3 November.

If your return is due in less than 2 or 3 bank working days, as in the examples above, then for this return only - you will need to pay by a different electronic method.

Bank working days are Monday to Friday, excluding bank holidays.

The due date for your return is shown on the screen where you enter your VAT return figures.

The acknowledgement page displayed once you have submitted your return will also confirm whether the payment will be collected by Direct Debit or whether you need to pay by a different electronic method.

Due date of payment: Selecting this payment method will provide you with more time to pay your VAT due than any other method. HMRC will automatically collect payment from your nominated bank account on the 3rd bank working day after the additional seven calendar days allowed for submitting your return online.

What HMRC will collect: HMRC will only collect VAT which you declare on your return(s) as payable to HMRC. No other amount due will be collected. If you wish to pay other amounts due, for example, penalties or interest, please follow the link How to pay VAT, which lists alternative payment methods.

Alternative payment methods: Although you must pay VAT shown as due on your online return electronically, you do not have to pay by DD. For a list of alternative electronic methods please follow the link How to pay VAT.

Annual Accounting Scheme (AAS): If you use the AAS, you can only use this service to pay any balancing amount shown as due on your annual return at year end. Please follow the link VAT Notice 732 if you need further guidance on:

Payments on Account (affects very large businesses only): If you have to make Payments on Account and have chosen to send quarterly VAT Returns, you cannot use this DD service.

Cancellations or amendments: You cannot cancel or amend a Direct Debit Instruction (DDI) using this service. You need to inform your bank/building society who will automatically advise HMRC of any changes.

This includes when a DDI is being transferred to a different bank or building society, or when it is transferred to a different branch within the same bank/building society. HMRC will only be able to make amendments notified via your bank/building society.