Can you make payment on account for VAT?

[Karimbo]

hello,

Bit of an odd request. Most people would want to keep the VAT in their account and earn the tiny bit of interest.

I do quarterly VAT returns and I would like to just transfer to money over to HMRC on a monthly basis. Then submit the return on the quarter and have HMRC take the remaining balance by DD.

No other reason than to just look at the bank and see thaat all the money there is mine, suppliers paid off, taxman paid off etc.

I'm on flat rate scheme so there won't be large swings in amounts based on business expenditure.

Edit: Alternative would be to just disable direct debit and do all manual transfers I guess.

 

[macScot]

Another alternative could be you open a separate higher interest-paying account and deposit the money there so that it earns you interest and pay HMRC from that account when due. This way your main account does not include it.

Note: regarding "all the money there is mine..." > Do not forget to account for other taxes e.g. corporation tax etc. before spending it all.

Apparently, Albert Einstein once described compound interest as the “eighth wonder of the world,” saying, “he who understands it, earns it; he who doesn't, pays for it.”

 

[lesvatadvice]

Join Annual Accounting?

 

[VJR Business Support Ltd]

If you bank with Starling, you can create a "space" for VAT and put the money aside in there each month and then just transfer it back to the main bank account when the DD is due to come out

 

[Newchodge]

If you bank with Starling, you can create a "space" for VAT and put the money aside in there each month and then just transfer it back to the main bank account when the DD is due to come out

Or just set it up so it is paid direct from the Space. The only problem with that is that the bank statement ignores the Space and shows your total balance.