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Client VAT direct debit

Is there a way to see if they have one in place?

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Morning all,

Daft question really, but how can I tell if an MTD client has a direct debit in place for their VAT payments? Can't see it on the ASA?

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By bernard michael
14th Oct 2021 10:19

Tried asking the client ??

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Replying to bernard michael:
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By David Ex
14th Oct 2021 10:40

bernard michael wrote:

Tried asking the client ??

And client’s bank if client doesn’t know.

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By Peter Anderson
14th Oct 2021 11:09

I think it shows on Xero and QBO on old submitted VAT returns if client is using them.

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Replying to Peter Anderson:
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By bettybobbymeggie
14th Oct 2021 11:12

That would be helpful - do you mind me asking where in Xero because its not obvious from the Xero VAT return I am looking at!

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Replying to bettybobbymeggie:
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By Peter Anderson
14th Oct 2021 12:02

Sorry, looking now I can't see it on Xero, maybe its just QBO that shows it

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By bettybobbymeggie
14th Oct 2021 11:09

Yes thanks - sorry should have clarified - was hoping there was a way via the ASA. Presume not.

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By Paul Crowley
14th Oct 2021 12:41

What are HMRC like?
The old system always asked for a DD to be set up (if there was not one) everytime a return was started

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By Matrix
14th Oct 2021 13:31

Just see if the payments tend to go out on or around the 10th of the month.

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Tornado
By Tornado
14th Oct 2021 18:14

The VAT Submission Receipt will usually say if the money will be collected by Direct Debit or if a payment is to be made by other means. Just look as the last receipt, a copy of which should be in the VAT Filer records of your submission software.

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By seitler
14th Oct 2021 21:45

A related matter is if a direct debit was in place under the old pre MTD system (HMRC portal) is it automatically carried over when HMRc move the client over to MTD

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Replying to seitler:
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By rmillaree
15th Oct 2021 14:49

"A related matter is if a direct debit was in place under the old pre MTD system (HMRC portal) is it automatically carried over when HMRc move the client over to MTD"

The answer is yes and no - in theory the direct debit is always swapped over - the reaility is that probably something over 50% of the time hmrc do not collect that first direct debit as they should do. Not sure if its some banks it works for and some not - i have never been able to geta straight answer as to why they failed. Normally the second ones on do work.

Its probably safer though if a gteway exists to cancel directdebit before swap and doa new one after you your the mtd has been fully actioned .

One assocaited question i have is how do Xero work out their marker flags ref direct debit?
Is this live pulled through info from vat server or is it simply data taken from last RTI submision receipt - i suspect its the later but until i geta client who cancels a direct debit i cant proof check this in action.

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By bettybobbymeggie
15th Oct 2021 14:55

Thanks for the replies. Client has only ever had repayments so no way of telling apart from checking with the bank. Too much to ask that the ASA would have this info.

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