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VAT DD

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    VAT DD

    Anyone know why the HMRC don't take the VAT DD's until 6 weeks after the end of the quarter to which it pertains?

    I would really like it if they took it as soon as I submit my return, rather than having 10k of their money in my account for a month and a half.
    Never has a man been heard to say on his death bed that he wishes he'd spent more time in the office.

    #2
    Originally posted by Scrag Meister View Post
    Anyone know why the HMRC don't take the VAT DD's until 6 weeks after the end of the quarter to which it pertains?

    I would really like it if they took it as soon as I submit my return, rather than having 10k of their money in my account for a month and a half.
    In the olden days the banks used to pay interest to accounts with a credit balance so it would have been better for you to keep the money in your/yourCo's account for as long as possible.

    For HMRC it is going to be easier and cheaper to collect all the VAT money in one collection run at the last minute, rather than operate daily collection runs to suit the handful of strange people that want to pay early.

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      #3
      You could cancel the DD and pay by transfer, that way you could do it as soon as you wanted to.
      ContractorUK Best Forum Adviser 2013

      Comment


        #4
        Originally posted by Scrag Meister View Post
        Anyone know why the HMRC don't take the VAT DD's until 6 weeks after the end of the quarter to which it pertains?

        I would really like it if they took it as soon as I submit my return, rather than having 10k of their money in my account for a month and a half.
        Why? It cases you no harm and you do earn a little bit of money on it don't you?

        Comment


          #5
          Originally posted by JamJarST View Post
          Why? It cases you no harm and you do earn a little bit of money on it don't you?
          Nothing like the good old days a few years back where I'd be making just shy of £100 per month on interest, now it's like £0.50 or something equally stupid. And having the VAT money in my account is no use on the interest front it just blurs my view of the account when I look at the balance.

          Originally posted by Clare@InTouch View Post
          You could cancel the DD and pay by transfer, that way you could do it as soon as you wanted to.
          Am considering this already, I like DD as a process, its just the long delay in taking it.
          Last edited by Scrag Meister; 14 March 2012, 09:24.
          Never has a man been heard to say on his death bed that he wishes he'd spent more time in the office.

          Comment


            #6
            Originally posted by Scrag Meister View Post
            Nothing like the good old days a few years back where I'd be making just shy of £100 per month on interest, now it's like £0.50 or something equally stupid. And having the VAT money in my account is no use on the interest front it just blurs my view of the account when I look at the balance.
            I still don't see the problem here, I sweep the excess funds in my current account into my business saver account. The spreadsheet I have from SJD automatically calculates the VAT and Corp tax liabilities and I have a bank spreadsheet with columns for these amounts which tells me my available monies at a glance. The only thing I have to do is make sure I transfer the money back to the current account the day before the DD and how difficult is that? The savings account may not be making £100's in interest a month but it is making more than 50p!! All helped by having the highest possible balance I can.

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              #7
              Originally posted by JamJarST View Post
              I still don't see the problem here, I sweep the excess funds in my current account into my business saver account. The spreadsheet I have from SJD automatically calculates the VAT and Corp tax liabilities and I have a bank spreadsheet with columns for these amounts which tells me my available monies at a glance. The only thing I have to do is make sure I transfer the money back to the current account the day before the DD and how difficult is that? The savings account may not be making £100's in interest a month but it is making more than 50p!! All helped by having the highest possible balance I can.
              Sure, just a slightly different strategy, in that I transfer it back as part of my quarterly VAT process, and it sits there in my main account awaiting the DD request.
              Never has a man been heard to say on his death bed that he wishes he'd spent more time in the office.

              Comment


                #8
                I never look at my business bank account balance and think 'that's the amount of money I have'... it's dangerous.

                Much better to use your accountant's P&L and/or a spreadsheet with all your invoices and taxes etc etc.
                It's about time I changed this sig...

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                  #9
                  I've never fancied the idea of HMRC being able to take money directly from my bank account. The BN66 farce shows how little they they can be trusted and a recent experience over my VAT returns shows them to be pretty incompetent.

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                    #10
                    Originally posted by javadude View Post
                    I've never fancied the idea of HMRC being able to take money directly from my bank account. The BN66 farce shows how little they they can be trusted and a recent experience over my VAT returns shows them to be pretty incompetent.
                    I can understand why you have little faith, but keep in mind that even HMRC DDs are covered by the DD guarantee - if they take something and you disagree, you can get it back. You can also cancel the DD at any time. The power is still in your hands, it just makes known liabilities easier to pay.
                    ContractorUK Best Forum Adviser 2013

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