Pay your VAT bill online to HMRC

If you submit your VAT Return online, you must also pay your VAT electronically. There are a few ways you can do this:

  • Pay using the HMRC website.
  • Pay from Sage 200cloud using the Sage e-Banking service.

    When you pay your VAT with Sage e-Banking a file is created containing the payment which you process using your bank's software.

  • Pay directly from Sage 200cloud using Supplier Payments.

How this works

  • If you are using e-Banking:
    • Sage 200cloud generates a payment and saves it in the folder specified for the bank account you used for the VAT payment.

    • You must upload this file to your bank's e-Banking tool to send the payment to HMRC.

  • If you are using Supplier Payments:
    • Sage 200cloud will send the payment for the payee HM Revenue and Customs to Supplier Payments for approval. Once this payment has been approved by your Supplier Payments account approver, the payment will be made to HMRC.

    • To check the status of the payment, see View the Supplier Payments dashboard.

Before you start

  • If you're using e-Banking, make sure you have:
    • Installed the e-Banking service components
    • Set up the bank account you're using the pay HMRC to use e-Banking.

    See How to set up e-Banking

  • If you're using Supplier Payments, make sure you have:
    • Set up your Supplier Payments account.
    • Linked your Supplier Payments account to the bank account you're using to pay HMRC.

    See Set up Supplier Payments for Sage 200cloud

How to pay your VAT Return online

Open: Cash Book > Other Transactions > VAT Return Payment.

  1. Select the VAT Return you want to pay from the list.

    You can only select a VAT Return that was submitted online and has a submission status of Success.

  2. Select the bank account that you want to use to pay your VAT Return.

    This defaults to the account set for HMRC payments in Nominal Ledger Settings.

    Note: If you are using Supplier Payments, the bank account is linked to Supplier Payments and cannot be changed unless it has funds of £0.00.

  3. Select the nominal account to post the VAT payment to. This defaults to the VAT Liability Account selected in the Nominal Ledger Settings.
  4. The HMRC VAT Return reference Number and the Amount to Pay are taken from the submitted VAT Return and can't be changed.
  5. Click Pay Now.
  6. Click Yes to process the payment.
    • If you use e-Banking, Sage 200cloud generates a payment and saves it in the folder specified for the bank account you used for the VAT payment. You must upload this file to your bank's e-Banking tool to send the payment to HMRC.
    • If you use Supplier Payments, Sage 200cloud will send the payment for the payee HM Revenue and Customs to Supplier Payments for approval. Once this payment has been approved by your Supplier Payments account approver, the payment will be made to HMRC. To check the status of the payment, see View the Supplier Payments dashboard.