VAT DD

[stek]

Anyone know why the HMRC don't take the VAT DD's until 6 weeks after the end of the quarter to which it pertains?

I would really like it if they took it as soon as I submit my return, rather than having 10k of their money in my account for a month and a half.

That's a cracking rate you're on then!

[psychocandy]

I never look at my business bank account balance and think 'that's the amount of money I have'... it's dangerous.

Much better to use your accountant's P&L and/or a spreadsheet with all your invoices and taxes etc etc.

Yeh. Agreed. Only time I look at business account it to make sure agency has paid me. Balance is irrelevant - P&L is the relevant bit as it profit available for dividend.

[JamJarST]

Yeh. Agreed. Only time I look at business account it to make sure agency has paid me. Balance is irrelevant - P&L is the relevant bit as it profit available for dividend.

Rubbish!! IMHO of course .... both are important, I would not personally declare a dividend in excess of what is in the back even though technically you can.

[kingcook]

I've never fancied the idea of HMRC being able to take money directly from my bank account. The BN66 farce shows how little they they can be trusted and a recent experience over my VAT returns shows them to be pretty incompetent.

+1

I don't like DD's in general, and only do it if (with my personal accounts) there's some financial incentive (e.g. £x discount per mth/yr)

[Scrag Meister]

That's a cracking rate you're on then!

Or could be that I am working my arse off on a couple of mediocre bob rate contracts and have no life?

Contracting 101 - Never discuss your rate or any true figures that enable someone to derive your rate.

[Wanderer]

I never look at my business bank account balance and think 'that's the amount of money I have'... it's dangerous.
Much better to use your accountant's P&L and/or a spreadsheet with all your invoices and taxes etc etc.

Agree 100%. The company's balance sheet shows how much is available to take as dividends at any given time and that's what matters to me as a director and shareholder. The amount of cash at hand set aside in the bank for paying CT/VAT is of little importance so long as the transactions are properly accounted for and the bank balance matches my company balance sheet.

Personally, I don't do the DD VAT - I just schedule a payment when I do the VAT return. It only takes a few minutes.

[Notascooby]

I just had a funny thing happen - looked at my business account and noticed a significant DD for VAT had come out, then a fews days later I couldn't log into my Cater Allen account, just phoned up and got my access back, my access was revoked but operator wan't sure why - then noticed that the big withdrawl had disappeared.

Anyone else get a phantom amount taken and then replaced?

Should I call the bank to workout WTF happened or was I just tripping?