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New client VAT payment issue

New client VAT payment issue

We took on a new client and were unable to file the first two VAT returns due to a combination of bad timing, bad hand over and not getting the agent code from HMRC.

The client paid the 2 amounts due by card to avoid surcharges, the returns were filed and now HMRC has taken the amounts again by direct debit.  This has resulted in the bank account becoming overdrawn.

HMRC cannot refund the amounts back into the account directly as they "do not have bank details", yes I know they took it by direct debit but apparently they have a separate box for refunds and this was not completed in this case.  They are issuing payment orders through the post.

My question is can we seek to recover bank charges and a hassle factor from HMRC or do we just have to take this on the chin.

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26th Feb 2016 11:13

Direct Debit guarantee

Ask the client to ring their bank and recall the amounts taken using the DD Guarantee!

 

All DD are covered by it.

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26th Feb 2016 11:54

Top Advice

mark.abersoch wrote:

Ask the client to ring their bank and recall the amounts taken using the DD Guarantee!

All DD are covered by it.

Great idea.

I'd be interested in the outcome.

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26th Feb 2016 12:33

Not sure about recalling

If the client recalls the DD and the payment order(s) have been issued then the client has created a VAT debt and I am not sure how, in this situation, this would interact with the surcharge regime.

Does anyone have an opinion on this aspect?

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