October 20, 2021
Topics  
by  Pradeepan Velayuthan

Has your VAT Direct Debit been cancelled?

Has your Direct Debit been cancelled between July and November 2021? HMRC have cancelled it because they do not have an email address for your business. If you want to pay using Direct Debit, you will need to set it up again using your Business Tax Account.

Why does HMRC need my email?

HMRC are now required to notify you in advance of any money being taken and email is the most efficient method to do this.

How do I know my Direct Debit has been cancelled?

If you have a Direct Debit set up with HMRC to pay your VAT, you should have received a letter in the post notifying you of these changes.

What do I need to do?

  1. Log in or create an online Business Tax Account via HMRC
  2. Log in and select your VAT card
  3. This should direct you to a step by step guide to set up a new direct debit
  4. Your new Direct Debit must be set up 10 days before your next VAT is due
  5. If you do not see instructions, please wait till the end of your current VAT quarter and try again

What happens if I do not provide an email?

Remember to give HMRC your email address along with your Direct Debit. If no email is used, HMRC will not collect your payment via Direct Debit and you could miss your VAT deadline. This could result in penalties.

Find more details below:

Pay your VAT bill: Direct Debit - GOV.UK (www.gov.uk)

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