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HMRC not collecting VAT DDs?

DDs not going through

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Have 3 clients so far where the usual DDs have not been collected - anyone finding the same ?

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By Wanderer
14th May 2019 11:33

A few people have reported this when client signed up for MTD, prior to the d/d being taken for 'old VAT'.

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By Maslins
14th May 2019 11:41

Yeah we've seen this for a few clients. Not all though, for some the DDs have transferred across perfectly.

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By sjmaccounting
14th May 2019 11:52

Thanks both - I'll suggest the clients make a manual payment and re-enter their bank details at the gateway

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By johnhemming
14th May 2019 11:58

Do you know what the receipt from HMRC says?

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By sjmaccounting
14th May 2019 17:31

3 cases spotted so far - all QE 03/19 returns and submitted via SAGE One in early April (with successful submission receipts).
None of them have yet been registered for MTD so the retuens were filed under the old system. None of the 3 have been direct debited!

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Replying to sjmaccounting:
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By johnhemming
14th May 2019 18:14

There is a receipt sent by HMRC. Your MTD software should send you this. Do you know what is in it?

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Replying to johnhemming:
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By Wanderer
14th May 2019 18:43

Even when not sent under MTD???

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Replying to Wanderer:
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By johnhemming
14th May 2019 19:08

My reading of the OP was that they were under MTD. If not under MTD then it is the old system.

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Replying to johnhemming:
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By Wanderer
14th May 2019 19:30

sjmaccounting wrote:

None of them have yet been registered for MTD so the retuens were filed under the old system. None of the 3 have been direct debited!

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By sjmaccounting
14th May 2019 19:46

Correct - the clients not direct debited (now including my own firm!) had not yet switched over to MTD and filed under the "old" system via SAGE One. Acknowledgements have been received for the VAT returns but no DD raised.

Confusing!!

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By Richard Wild
15th May 2019 13:42

There is a post on the HMRC customer online forum (but not the agent forum) at https://online.hmrc.gov.uk/webchatprod/community/posts/list/5515.page

The HMRC response says "There has been issues effecting collections of direct debits where businesses have followed the above [ie correct] process but direct debits have not been collected."

This doesn't appear to have been widely publicised, and I don't think it's clear why some DDs are working OK and others are not.

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By mwickwar
15th May 2019 14:08

I've had the same with my first MTD registered VAT return. Thanks for the HMRC forum link given in one of the replies. At least it's a known issue and is getting some attention. I'm still not looking forward to figuring out which clients do and don't get their DDs taken...

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Locutus of Borg
By Locutus
16th May 2019 00:28

I tested out a couple of 31 March VAT returns on MTD.

One was a small VAT refund, which duly arrived. The other was a liability that should have collected by the new MTD direct debit, but this seems to have failed.

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By Charlie Carne
04th Jun 2019 12:33

I, too, registered a client early for MTD and filed their March return nice and early on 23/4/19, but no DD was taken on 10/5/19. The company's bank account shows that the old DD mandate was cancelled (presumably by HMRC, as the company didn't do this) and a new one set up on 9/5/19. I spent over 40 minutes on the phone with HMRC today and they admitted that this is a known problem that has affected many businesses' first DD made on a MTD return. They advise making a manual payment if the DD does not work and that it should work fine for the next return. It doesn't fill one with confidence for the roll-out of MTD. They have confirmed that they will not levy surcharges for late payment in this situation as it is the fault of HMRC.

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By MrsG
12th Sep 2019 12:14

I had to make a manual payment of VAT in June after my last non-MTD VAT DD was not collected. Now I find that my first MTD VAT DD has not been collected becauase the June manual payment which should be on the old system has been allocated to the MTD system instead. It thinks my account is in credit & so failed to collect the DD. The Helpline advised me to keep checking my online account & when it is corrected so it shows a payment is due, then I should make a manual payment to clear the liability. They suggested this might take 2-3 weeks to sort out. Incidentally, the old system shows no liability as it thinks the June DD was collected. It's a complete mess.

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By Cheshire
12th Sep 2019 13:43

I phoned HMRC yesterday for a client. They advised they could possibly take the payment today. They didnt. So I called again and the comments were:-

Even if you set up the D/D on time, albeit close to the deadline, then filed your VAT return via MTD on time, they are aware in some cases the information is not pulling through correctly at HMRC's end so then the D/D is not being claimed.

They have advised that the client should NOT make a manual payment, but have escalated to their technical team for investigation. They expect the D/D will then be processed within the next few days and an update will be shown via the clients Business Tax Account (assuming they have one of course!). They have my contact number in case of further issues.

HMRC confirmed no surcharge and are relying on the 700/22 - no penalty clause for the soft landing period because they 'expect problems with people's first MTD returns!'

The information re this issue has only been circulated internally within HMRC for call handlers - it has not been passed to developers/added to any service issue pages!

Bit late for some perhaps, given the timescales, but though I would share anyway.

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Replying to Cheshire:
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By WhiteRose
12th Sep 2019 18:53

I have had the same issue for a couple of clients this week, first quarter under MTD, we have the emails confirming the DD has been transferred but no money taken. I too phoned HMRC yesterday, was told to check again today and if no money taken to tell clients to pay it by BACS - the opposite of what you have been told! Which is what I have done. Am now very confused.

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Replying to WhiteRose:
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By Matrix
12th Sep 2019 20:11

My DD went out on the 12th last month so don’t rush to pay by BACs.

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Replying to WhiteRose:
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By Cheshire
12th Sep 2019 21:11

Yesterday they initially suggested if the D/d didn't go todaythen my client should just pay direct, but then the call handler changed their minds. The call handler today said definitely do not pay, but it appears the info about the issue had only just reached her. Was about 10.30 today. I'm not fully convinced yet that something will be taken by D/d but I least I have a reference number in the event of further issues (for what it's worth).

I would suggest your client keeps a close eye on his bank. He should be able to get them to reject the D/d if it does get claimed, on the day it appears, if he phones his bank early enough in the morning (don't let him be fobbed off by the bank!)

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Replying to WhiteRose:
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By JoF
13th Sep 2019 08:30

My client now has an email stating the D/D will go out at some point. Their Business Tax Account states the actual date - looking around 17th. If they can log in to that they should get their date and then can sort it from there with the Bank/HMRC).

Annoying that the messages from HMRC are not consistent, but then when are they ever?!

Thanks for the info Cheshire

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By WhiteRose
13th Sep 2019 08:57

Thanks for the update, clients paid yesterday via BACS, the HMRC DDs have not gone as of today (13th) but we’ll keep a watchful eye on the accounts.

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