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MTD VAT Direct debit balls up

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    MTD VAT Direct debit balls up

    So having switched onto MTD and previously had a DD for VAT in place I noticed that the payment for the quarter recently ended hasn't been taken.

    Did a bit of googling and found this:

    Vat DD payments in mtd | AccountingWEB

    Sure enough the co HMRC VAT DD has been cancelled and there is no sign of another DD having been set up even though payment is overdue.

    Tried to call HMRC this morning but got lovely automated message telling me they were very busy, go to the website and then ending the call with no choice to hold.

    Should I just sit back and let them realise/sort out their own mess or will it come back to bite me with penalties etc?

    IIRC missed one VAT submission before so have no more strikes before penalty.

    #2
    Originally posted by MrC View Post
    Tried to call HMRC this morning but got lovely automated message telling me they were very busy, go to the website and then ending the call with no choice to hold.

    Should I just sit back and let them realise/sort out their own mess or will it come back to bite me with penalties etc?

    IIRC missed one VAT submission before so have no more strikes before penalty.
    Yeah our experience on the phone line recently is similar. Does just seem to be a case of try to figure things out, and if it doesn't work, wait for HMRC to chase you.

    Re your final sentence, HMRC have been fairly clear that they accept MTD is a bit iffy, and as long as you can demonstrate you've made an effort penalties shouldn't apply. If you had a DD set up, you didn't cancel it, you submitted the VAT return on time, then the error seems pretty clearly HMRC's end. One thing I'm unsure of is whether HMRC will automatically not issue penalties, or whether they will and the onus will be on the client/their accountant to appeal them (which can be a PITA).

    Comment


      #3
      Originally posted by Maslins View Post
      I'm unsure of is whether HMRC will automatically not issue penalties, or whether they will and the onus will be on the client/their accountant to appeal them (which can be a PITA).
      Thanks Maslins, yes it's one of those conundrums where you shouldn't have to sort out their mess now but apppealing it might be worse.

      More succiently:

      lose vs LOSE

      Comment


        #4
        Am in the same boat, money quietly sat in the bank awaiting HMRC to collect via Direct Debit. Direct Debit gone missing. VAT account says I have nothing to pay. Gonna wait until they come-a-knocking.

        Comment


          #5
          how can this be?

          The first MTD users are for VAT periods ending April 2019. The DDs for that period is not yet due.
          I know this as my VAT period ended March 2019 (so no MTD for me), and the DD is not due to go till 10th May.

          Or have you volountarily done your submission by MTD?
          See You Next Tuesday

          Comment


            #6
            Originally posted by Lance View Post
            how can this be?

            The first MTD users are for VAT periods ending April 2019. The DDs for that period is not yet due.
            I know this as my VAT period ended March 2019 (so no MTD for me), and the DD is not due to go till 10th May.

            Or have you volountarily done your submission by MTD?
            I submitted my first MTD VAT return in March for the period ending in Jan as I had already set it up in FreeAgent.

            DD payment was taken as usual so no problems there but have heard from others that they have had this issue.

            Comment


              #7
              Same boat here, what a mess!

              Return for 02 19 period submitted beginning of March and expected to be taken out by DD mid-April.

              Registered for MTD end of March, all went through and received an email from HMRC stating;

              VAT Return Direct Debit: important information

              We need to give you some information after your transfer to Making Tax Digital for VAT. There is no need for you to take any action.

              You currently pay your VAT Return by Direct Debit. From 3 April 2019 we will transfer your Direct Debit over.
              On the 4th April, they indeed cancelled the old DD but apparently failed to setup a replacement one.

              The payment for 02 19 return has not been taken, and VAT account shows as owing nothing (actually says payment for 02 19 was received by DD)...

              Comment


                #8
                That last made me laugh.

                As for MTD DD, I am on the old system for a removal of funds in May. Let's see what happens in August...

                Comment


                  #9
                  Originally posted by TheCyclingProgrammer View Post
                  I submitted my first MTD VAT return in March for the period ending in Jan as I had already set it up in FreeAgent.

                  DD payment was taken as usual so no problems there but have heard from others that they have had this issue.
                  early adopter, or bleeding edge?
                  See You Next Tuesday

                  Comment


                    #10
                    My next VAT return is now due but my first MTD return is not due until August so the advice I saw on HMRC and Sage's websites was to not activate it until after this quarter's return is done.

                    Glad I followed the official guidance and didn't activate early as I have no patience to deal with such nonsense from HMRC.

                    Comment

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