VAT Direct Debit Changes

If you are VAT registered, your VAT direct debit may be cancelled if you do not take action when contacted by HMRC.

HMRC are migrating customer accounts onto a new tax platform and have begun writing to customers that currently pay by their VAT by direct debit, where an email account is not registered to the direct debit.  The direct debit will be cancelled when migrated unless an email address is provided.

Email addresses are now required for all direct debits so that HMRC can comply with banking laws – due to time constraints there’s not enough time between submitting and paying a VAT return for HMRC to inform businesses via post of the amount that will be withdrawn from their bank account.

Therefore, if you are a VAT registered business, you should provide HMRC with the required email address if / when prompted to do so, and this should be done via your Business Tax Account.  Please look out for this letter from HMRC and regularly check your Business Tax Account for the necessary prompt.

If you have any questions concerning this or would like help setting up a Business Tax Account if you don’t already have one then please get in touch with your usual Dodd & Co contact.