VAT drawn a day too early

**monkeyBoy32** · 13 June 2008, 14:14

Originally posted by gadgetman View Post

I pay my VAT online and by Direct Debit and it always says that it will be drawn on the 12th of the month.

However this week they tried to draw it on the 11th and the bank has bounced it and charged me for the privilege. The the money was available in my reserve account but I hadn't transferred it over yet.

Will they try to reapply the DD or should I expect a visit!

As this is their fault is there any chance of getting the charges back from them?

I would imagine it is the banks fault not the VAT people. They wont request that money each month, it is the bank (I would think) who set up and manage the direct debit.

Banks can do funny things like that (not actually very funny) If I have a direct debit going out on a monday, I sometimes see it has actually gone out the friday before.

I've never had to call the VAT people but I'm sure they cant be that bad (can they??) Give your bank a call as well and make sure they dont charge you as you thought the money would be there..

My advice would be to make sure the money is there a good 4 or 5 days before hand - even when I transfer between my business savings and business current acc, it takes a day or 2..

**beeker** · 13 June 2008, 14:17

[QUOTE=monkeyBoy32;557998]I would imagine it is the banks fault not the VAT people. They wont request that money each month, it is the bank (I would think) who set up and manage the direct debit.

Banks can do funny things like that (not actually very funny) If I have a direct debit going out on a monday, I sometimes see it has actually gone out the friday before.

I've never had to call the VAT people but I'm sure they cant be that bad (can they??) Give your bank a call as well and make sure they dont charge you as you thought the money would be there..

My advice would be to make sure the money is there a good 4 or 5 days before hand - even when I transfer between my business savings and business current acc, it takes a day or 2..[/QUOTE]

I'd swap banks if i was you - mine is instant.

**monkeyBoy32** · 13 June 2008, 14:19

Hmm - lloyds TSB - transfering between personal accounts is instant, transfering between business accounts takes a day.

**gadgetman** · 13 June 2008, 14:21

I'd swap banks if i was you - mine is instant.

Mine too, hence why I usually leave it until the last minute (well, the day before).

**expat** · 13 June 2008, 14:34

Originally posted by gadgetman View Post

I pay my VAT online and by Direct Debit and it always says that it will be drawn on the 12th of the month.

However this week they tried to draw it on the 11th and the bank has bounced it and charged me for the privilege. The the money was available in my reserve account but I hadn't transferred it over yet.

Will they try to reapply the DD or should I expect a visit!

As this is their fault is there any chance of getting the charges back from them?

where does it say that it will be drawn on the 12th? That is, who says that, HMRC or the bank? Is it a clear statement?

And do they state it as a single rule for all months, or is it something you see separately every month? If so, did you see the 12th this time?

**expat** · 13 June 2008, 14:39

Originally posted by monkeyBoy32 View Post

I would imagine it is the banks fault not the VAT people. They wont request that money each month, it is the bank (I would think) who set up and manage the direct debit.
..

No, that's a Periodic Payment or Regular Arrangement or Standing Order or whatever. A Direct Debit is where the payee (HMRC) get to debit your account. You have agreed with the bank that the payee may do this; the payee (HMRC) actually initiates each Debit. They may specify a date, in which case either they specified a wrong date (their fault), or they specified the right date and the bank processed it wrongly (bank fault but they may have fine print that says they don't have to respect the details), or they specified 11th and there is nothing wrong about that except a change of habit not a breach of undertaking (OP fault for making assumptions); or they may not specify a date, in which case it just happened when it happened.

**ghl** · 13 June 2008, 14:45

I do my VAT online and pay by DD. The VAT Acknowledgement I received said it was due on 11/6 this quarter (last quarter said 12/3)

**gadgetman** · 13 June 2008, 15:25

When you submit the return you get an acknowledgement which states something like "this payment will be collected by direct debit on 12th June 2008....".

Unfortunately I never printed off the last one but it was definitely the 12th.

Anyway I rang them and they said to send in a cheque. I also rang the bank and without prompting he looked at the account and refunded the (£32) charge.

**Integrity** · 13 June 2008, 15:25

Originally posted by gadgetman View Post

I pay my VAT online and by Direct Debit and it always says that it will be drawn on the 12th of the month.

However this week they tried to draw it on the 11th and the bank has bounced it and charged me for the privilege. The the money was available in my reserve account but I hadn't transferred it over yet.

Will they try to reapply the DD or should I expect a visit!

As this is their fault is there any chance of getting the charges back from them?

You should ring up customs, tell them what happened, organise the payment through alternative means. You have until the end of the month because it is considered late. If you try and let the banks deal with it, it will probably be late, and although you can probably explain everything, it easily becomes more hassle than it is worth.

Deal with the charges as a separate issue.

VAT drawn a day too early