27 August 2021

Problems with VAT Direct Debit payments not being taken


VAT & Customs Duty

We have identified a potential issue regarding your future VAT payments, verify your email address today.

There have been some recent instances where companies with a VAT quarter ended June 2021 who have filed their return as normal, have subsequently received a surcharge notice for late payment and have, on investigation, found that the Direct Debit has not been taken by HMRC.

This is due to new Banking Regulations introduced by HMRC which mean they will no longer take Direct Debits without notifying the account holder in advance of the executing the payment.

These regulations are in place for all VAT periods going forward. 

In order for HMRC to verify the Direct Debit an account holder must be set up and HMRC must have a verified email address on their records for the account holder. 

If you do not have a verified email address attached to your account, your Direct Debit payment will be cancelled.

If you already have an email address attached to the account, the authorised email address must also be verified.

We therefore recommend you log onto your government gateway so that you receive the ‘verify your email’ prompt, this process should be completed to ensure your account is appropriately set up.

If you have any queries regarding this or if you have already received a surcharge notice in lieu of a Direct Debit cancellation and would like our help lodging an appeal against this, please do not hesitate to get in touch with our VAT team.