VAT Payments on Account
HMRC have issued a revised version of the VAT Payments on Account notice (700/60). This cancels the previous version which was published back in December 2003.
The revised notice explains when Payments on Account (POA) are required and how they work.
VAT registered businesses become liable to make POA’s where
- Quarterly VAT returns are submitted to HMRC
- Total liability exceeds £2m a year
Businesses that are liable to make POA’s are required to pay 1/24th of their estimated annual liability to HMRC in the second and third months of the VAT quarter, with a balancing payment submitted with quarterly VAT return.
The main changes in the revised notice relate to changes in banking payment details and reconsideration procedures. Businesses that wish to apply for a reconsideration of the amounts due under the POA regime must apply in writing to the Payment on Account Team, 3rd Floor North, Queens Dock, Liverpool L74 4AA.