VAT Direct debit

[Fred Bloggs]

HMRC have changed the bank accounts recently. There was a change over period, it's now likley that the old account is shut.

Thanks I did check the details and it seemed correct. I think it was just a glitch. I'll try again next quarter.

[Sockpuppet]

For years now I have paid my VAT every quarter by bank transfer from Santander to HMRC. Last week the transaction bounced. I went onto HMRC website and paid by company debit card. No idea why on this occaision the bank transfer failed.

HMRC have changed the bank accounts recently. There was a change over period, it's now likley that the old account is shut.

[SueEllen]

I did my first ever VAT return yesterday. I'd set up a DD months ago, but I'd forgotten that, and had planned to do a BACS payment after submitting the return.

On the final page after submission I was told DD would be collected on the 10th March. I queried this on the helpline, since my understanding is the payment was due by the 7th, but they said that was perfectly fine. I think I'll probably remove the DD and do it manually next time though.

They give you extra days if you use direct debit. A lot of companies who take payments by direct debit do that.

[Fred Bloggs]

For years now I have paid my VAT every quarter by bank transfer from Santander to HMRC. Last week the transaction bounced. I went onto HMRC website and paid by company debit card. No idea why on this occaision the bank transfer failed.

[matzie]

I did my first ever VAT return yesterday. I'd set up a DD months ago, but I'd forgotten that, and had planned to do a BACS payment after submitting the return.

On the final page after submission I was told DD would be collected on the 10th March. I queried this on the helpline, since my understanding is the payment was due by the 7th, but they said that was perfectly fine. I think I'll probably remove the DD and do it manually next time though.

[Sockpuppet]

Touchwood never had a problem in 5 years of trading paying via DD.

I did even manage to miss a 0 off a tax return meaning it took £1000 less VAT off me than it should have done. Phoned up explained they told me to write a letter and cancel DD. Pay £1000 via BACS and then reset up DD.

All worked without a hitch and within a week. Sorted.

[Clare@InTouch]

It seems to work fine for the majority of people, as Sue Ellen says you just need to keep an eye on the first one. As long as you set the DD up early, and before you file the actual return, it should go through fine though.

If you want an easy life get your accountant to prepare the return, you simply review it, they then file it and the DD goes out.

[SueEllen]

I pay VAT by direct debit. After doing my VAT online then doing a bank transfer for years.

The only problem I had was on set up - you have to remember to pay your current payment normally.

The money comes out of your account about 7 days after your VAT period ends. You will be informed of the date when you submit your VAT return.

[badger7579]

My accountant offered this service but said they had had problems with HMRC taking the wrong amount either too much or not enough. I prefer to be in control of this as I don’t have massive confidence that HMRC can process these DD's properly.

[diesel]

My accountant suggested I pay my VAT by direct debit. Just wondering if anyone else has done this with no problems?

(I thought I heard of business experiences with HMRC not taking payments on time and then blaming the Ltd co for late payment – correct me if I am wrong).