Paying your VAT can be a complex web to untangle at times and the latest change could add to your ongoing headache. The latest news is that HMRC are currently undertaking work transforming their VAT services, which includes migrating customers to a new IT platform. This new change will impact customers with an existing Direct Debit.
UK banking regulations require HMRC to have a valid contact point in place for those customers using Direct Debit. This will enable them to notify customers of the date when debits will be taken and the amount in advance.
How does this impact me?
If you wish to continue paying your VAT by Direct Debit you will need to provide HMRC with a valid email address (not your agent’s) prior to the system being migrated to the new IT platform. HMRC started to transfer accounts in July and anticipate a deadline of September 2021.
However, if you fail to provide an email address before they move your account to the new system, HMRC will cancel your direct debit and you will need to arrange for an alternative method to pay your VAT. You should have received a letter from HMRC in May advising you of this change.
If you haven’t done so already and you want to continue paying your VAT by Direct Debit you need to act fast. Log into your Government Gateway or Business Tax account and enter your email address, however if your account has already been moved you will be prompted to set up a new Direct Debit with the relevant contact details.
As providers of Sage 50/50cloud Account’s software and support, Advantage Services are always on hand to assist you with your accounting challenges. Simply contact our experts to find out how we can help you.