VAT bank mandates cancelled

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Wondering whether anyone else has encountered this.

Two clients now, neither called Nigel, have stopped having their VAT payments taken, and been hit with penalties for late payment as they were unaware of it.

In the first case, the VAT say that the clients cancelled the mandate themselves, which they obviously wouldn't, and are refusing to accept the appeal against the penalty. The second case has just happened.

It is of course possible it's a bank mistake, but they are different banks.

Replies (5)

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Replying to Wanderer:
By Hugo Fair
31st Jul 2023 14:54

Sounds likely, but ...

... what a load of orlocks - "To comply with new UK banking regulations, HMRC now need to hold an email address in order to take payments by direct debit."

Funny that ... no-one else who I pay by DD has demanded my email address!

Thanks (1)
By jon_griffey
31st Jul 2023 12:46

We have had an issue where client record on Agent Services Account said 'no direct debit set up'. Client then duly paid by bank transfer and lo and behold they took it by direct debit as well. Checking ASA Friday it said a direct debit was set up. But checking again today it is back to 'no direct debit set up'. Hopeless.

Thanks (1)
Routemaster image
By tom123
31st Jul 2023 12:53

Presumably the client's bank can confirm the existence or otherwise of mandates, and their durations?

Thanks (0)
By RobbieT
31st Jul 2023 14:28

In the past I was advised by HMRC that a DD may be cancelled if it is unused for more than a year - such as if there were 4 consecutive quarters of rebate.

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