• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Total shambles with VAT payments

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Total shambles with VAT payments

    I had a DD on my 2nd business account for VAT. I cancelled this after my previous payment was taken.

    Then I struggled to set up a new one and as far as I knew, hadn't. So I sent a one-off payment direct from my primary bank account on the 10th July.

    Today I was therefore rather surprised to find that HMRC took the same payment 3 times - once the one I sent on 10th July. And twice more through direct debits on the 8th and 10th of July - from my primary account. So my VAT balance is several thousand in credit!

    My bank shows only one DD exists, and nothing was taken from the old account. So how and why would HMRC take the same payment twice, a couple of days apart?

    Will they reimburse me automatically or do I have to chase them for it?
    Originally posted by MaryPoppins
    I'd still not breastfeed a nazi
    Originally posted by vetran
    Urine is quite nourishing

    #2
    Originally posted by d000hg View Post
    My bank shows only one DD exists, and nothing was taken from the old account. So how and why would HMRC take the same payment twice, a couple of days apart?
    There's clearly been a cock-up somewhere along the line. You might have to speak to both your bank and HMRC to get this resolved.

    Will they reimburse me automatically or do I have to chase them for it?
    Now there's a question. I once missed a payment as the DD had been cancelled in error. I rang up, made the payment over the phone and reset up the DD. HMRC subsequently took the same payment again so like you I was in credit.

    HMRC told me to deduct the amount from my next VAT return which I did. Unbeknownst to me, they actually issued a refund cheque but it went to my old address - I thought I'd changed it but I'd only updated my address on my PAYE and CT records, not my VAT records (you'd think there'd be one record right?). So when I "underpaid" my next return, I was now in arrears. It was a complete nightmare and ended up in the hands of debt collectors before it all got resolved (amicably, without penalty in the end).

    You need to ring them and ask them to issue a refund IMO.

    Comment


      #3
      ...

      Originally posted by d000hg View Post
      I had a DD on my 2nd business account for VAT. I cancelled this after my previous payment was taken.

      Then I struggled to set up a new one and as far as I knew, hadn't. So I sent a one-off payment direct from my primary bank account on the 10th July.

      Today I was therefore rather surprised to find that HMRC took the same payment 3 times - once the one I sent on 10th July. And twice more through direct debits on the 8th and 10th of July - from my primary account. So my VAT balance is several thousand in credit!

      My bank shows only one DD exists, and nothing was taken from the old account. So how and why would HMRC take the same payment twice, a couple of days apart?

      Will they reimburse me automatically or do I have to chase them for it?
      Doesn't the dd guarantee mean you only have to call your bank and they will fix it?

      Comment


        #4
        HMRC should refund it automatically, but it's worth asking your accountant to call them just to make sure. They have a habit of hanging onto money until people ask for it sometimes!
        ContractorUK Best Forum Adviser 2013

        Comment


          #5
          Originally posted by tractor View Post
          Doesn't the dd guarantee mean you only have to call your bank and they will fix it?
          Should do - that's the whole point of doing a direct debit.
          Best Forum Advisor 2014
          Work in the public sector? You can read my FAQ here
          Click here to get 15% off your first year's IPSE membership

          Comment


            #6
            Originally posted by tractor View Post
            Doesn't the dd guarantee mean you only have to call your bank and they will fix it?
            The HMRC DD thing is confusing (to me) though. There's the page you set up a specific VAT DD, which you can't seemingly access if you already have one. Then on the "Paying HMRC" page you can choose DD or bank transfer but for DD it asks the amount you want to pay... which seems the opposite of how DD works. I tried using this but that put me off so I didn't continue (as far as I know).

            Now I'm wondering if I did continue and set up a DD which initially took the payment I specified, then two days later was triggered by an automatic process.

            Since I made a manual payment, it's all buggered up even if the DD is set up

            I can afford to just not pay VAT on my next two returns but I'll chase HMRC and double check all my bank statements.

            It's just perplexing - I have no idea if I coked it up or the bank did, or HMRC. SOMEONE set up a new DD on my new bank account and I have to assume it was me.
            Originally posted by MaryPoppins
            I'd still not breastfeed a nazi
            Originally posted by vetran
            Urine is quite nourishing

            Comment


              #7
              Originally posted by Clare@InTouch View Post
              HMRC should refund it automatically, but it's worth asking your accountant to call them just to make sure. They have a habit of hanging onto money until people ask for it sometimes!
              What rate of interest do they pay on it? Might be worth keeping schtum and making a bit from the interest for awhile
              'CUK forum personality of 2011 - Winner - Yes really!!!!

              Comment


                #8
                Had DD issues with VAT as well but the exact opposite. First time I made a manual payment and then set the DD up, they didn't take anything at all for the next two DD's resulting in a tulipty letter from them both times. Cancelled it and set another up and not a hiccup since. I never thought about contacting the bank about it though.
                'CUK forum personality of 2011 - Winner - Yes really!!!!

                Comment


                  #9
                  Originally posted by d000hg View Post

                  It's just perplexing - I have no idea if I coked it up or the bank did, or HMRC. SOMEONE set up a new DD on my new bank account and I have to assume it was me.
                  You want to stay off that stuff. Drugs are bad!
                  'CUK forum personality of 2011 - Winner - Yes really!!!!

                  Comment


                    #10
                    Originally posted by d000hg View Post
                    Will they reimburse me automatically or do I have to chase them for it?
                    I think you can expect the money to land back in your account at some point. This is based on similar experience where I paid VAT with a manual transfer in advance of when it was due, then the DD went out as usual only to be refunded shortly (about a week iirc) thereafter, without any prompting from me.

                    Comment

                    Working...
                    X