This guidance explains the VAT Payments on Account scheme, which has been in operation since 2 September 1993. The regime sets out the mechanism by which certain VAT-registered businesses are required to make advance payments towards their VAT liability before the end of each accounting period. The scheme determines which businesses qualify for the arrangement and outlines the calculation methods and payment schedules that apply to participating traders.
Source: HMRC (GOV.UK) – Read the original