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MTD Direct Debit failure

Has this happened to anyone else?

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I apologise if this has been asked before, but my search of any answers came up blank.

Using my own partner's company as an MTD guinea pig, I set it up early for MTD and submitted the March 2019 VAT return under the new regime.  So far, so good.  He had an email on 21st March stating that the DD was being transferred over on 3rd April.  Come to 14th May and he gets an email from HMRC saying that the Direct Debit has been rejected by his bank and he must pay immediately.  His bank account had more than sufficient funds, so I can only imagine that the "transfer" of the direct debit hasn't been successful.

Has anyone else come across this yet?  We're going to have some seriously unhappy clients if their DD's start failing and they have to spend their time setting up new ones!  I've emailed HMRC but of course they're rather busy at the moment and I suspect they'll just say "speak to your bank".  I'd be interested to know if this is just a freak one-off or something else we're going to have to be aware of?

 

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By mwickwar
15th May 2019 13:55

Thanks for this - not sure why it didn't show up on my search.

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By JoF
15th May 2019 14:13

The inbuilt search facility isnt that good. I tend to do it just in google with 'aweb' included in search term.

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By Anita14
15th May 2019 15:04

I've had exactly this situation, not resolved and HMRC have said they have no idea what's happening. Two quarterly MTD returns so far, both with DD's supposedly in place, both failed, both times paid by bank transfer.

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By mwickwar
15th May 2019 15:23

The other link provided above seems to suggest it's not just limited to MTD registered businesses either which is even more frustrating. I think we're just going to have to warn clients to check that their DDs have been processed for a while.

Good old HMRC...!

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