Paying VAT to HMRC in advance

Froggitt

Can I pay VAT to HMRC on account? My quarterly VAT ends on 31 December, payable a few weeks later, however this quarter I have already invoiced (and received) a fair amount of VAT. I would rather not have it sloshing around my business bank account, and the business savings account pays just pennies.

Or if I do pay in advance, will they just return it?

Blackbeard_of_Perranporth

Why.

I hold my on deposit and transfer back on the DD date. Why give the taxman money before he wants it?

Pennywise

Froggitt wrote: »

Or if I do pay in advance, will they just return it?

Yes, they probably will as your account shows nothing is due.

J_B

Blackbeard_of_Perranporth wrote: »

I hold my on deposit and transfer back on the DD date.

I used to do that till my 'free 2 year banking' deal ran out.


Now it costs 35 p per transaction ... 70p in and out again ... didn't earn that much interest!

bengalknights

Can you reinvest it to make more sales?

trailingspouse

I keep mine in a savings account until I need to pay the VAT. By the time the Box 4 VAT has been subtracted, we owe much less than we've received. Might as well get a bit of interest on it.
I've no idea if they would return the money, as it's never crossed my mind to pay it a minute before I have to.