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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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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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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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14th May 2019 11:58

Do you know what the receipt from HMRC says?

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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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to sjmaccounting
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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to johnhemming
14th May 2019 18:43

Even when not sent under MTD???

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to Wanderer
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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to johnhemming
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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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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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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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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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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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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