VAT DD

[prozak]

I really don't like having VAT sat in my bank account as it skews my view of the money in there.

I don't really understand your concern or comment.

You've got an asset in your accounts and a liability.

Your bank account is just one piece of the puzzle.

[Scrag Meister]

I have a seperate deposit account set up for the company and I plan on chucking all the VAT and CT in there every time I get an invoice paid. Put the DD on that account and it should take care of itself, leaving the co. current account showing the real balance of cash.

The longer they leave it before collecting the more interest it earns as well.

I run the same system, but I can't setup a DD from the deposit account though.

Interest???, this is 2011 not 2007, when I could expect a nice little figure from interest, now I don't even think about the interest, 36p last month!!! The rate is something dire like 0.1%.

[Waldorf]

I pay my VAT by DD, I just have the one account (not worth having a deposit a/c at the moment) and the VAT man takes his money when he wants, I just forget about it once my accountant has submitted the return.

[TheFaQQer]

Theoretically, it's so you can get a "bonus" from HMRC of having an extra week of interest, as an incentive to get people onto DD.

These days, it makes no difference, since interest rates are so low.

[DaveB]

Anyone know why HMRC take so long bothering to request the DD payment from the company account?

I'm usually pretty prompt with my return, within the first week of the quarter, and they don't request payment for another 5-6 weeks.

If they are doing a DD run around 12th of the month, why not throw all VAT to be paid into that.

I really don't like having VAT sat in my bank account as it skews my view of the money in there.

Am thinking about stopping the DD and going back to doing the bank transfer as soon as I have completed my return.

I have a seperate deposit account set up for the company and I plan on chucking all the VAT and CT in there every time I get an invoice paid. Put the DD on that account and it should take care of itself, leaving the co. current account showing the real balance of cash.

The longer they leave it before colecting the more interest it earns as well.

[Scrag Meister]

Anyone know why HMRC take so long bothering to request the DD payment from the company account?

I'm usually pretty prompt with my return, within the first week of the quarter, and they don't request payment for another 5-6 weeks.

If they are doing a DD run around 12th of the month, why not throw all VAT to be paid into that.

I really don't like having VAT sat in my bank account as it skews my view of the money in there.

Am thinking about stopping the DD and going back to doing the bank transfer as soon as I have completed my return.