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Vat DD payments in mtd

Hmrc not taking vat payments

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I have switched a number of clients into the vat mtd pilot. For two of them Hmrc have not taken the d/d payment that was due in respect of their Dec 2018 returns.

Neither client has received any demands from Hmrc yet both have had confirmation that the new d/d is in place.

Has anyone else experienced this?

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20th Apr 2019 13:29

No - but it sounds good.

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By gbolton
20th Apr 2019 13:42

The only problem is the client thought he was awash with cash and has now spent it all!

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By Anita14
20th Apr 2019 14:33

Yes, exactly that. I signed up for MTD in December, submitted first return mid January and got confirmation from HMRC that I need do nothing more as the DD would transfer automatically. In February I got an email saying the VAT payment was overdue.

The bank said they received a cancellation instruction on 31st December, with a phone number. I rang the number, which turned out to be HMRC "old" DD section. They said they are only responsible for deleting the old DDs and the new MTD section is responsible for setting up the new ones. It's going so well...

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to Anita14
20th Apr 2019 15:02

Anita14 wrote:

The bank said they received a cancellation instruction on 31st December, with a phone number. I rang the number, which turned out to be HMRC "old" DD section. They said they are only responsible for deleting the old DDs and the new MTD section is responsible for setting up the new ones. It's going so well...

That is ******* off the scale lunacy.

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By gbolton
to lionofludesch
20th Apr 2019 15:42

And somehow or another it will be the clients fault!

On a serious note though, both clients want to pay the arrears before Hmrc get their jack boots on but I have no idea how to. All I get when I phone the Vat enquiry office is 'Are you enquiring how to import a car'!

It's typically, a b****y shambles.

One of the biggest changes in tax processing history and there's no dedicated help line or certainly not one that i have found.

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By Anita14
to gbolton
20th Apr 2019 17:28

If your clients can remember their login details, they can find out how to pay from within their BTA.

Go to VAT Details / Check what you owe / Pay now

This gives 3 options: set up a direct debit, get HMRC's bank details and reference for a bank transfer, or make a debit/credit card payment.

Unfortunately I doubt you can see any of that from within the agent's account because of GDPR!

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By gbolton
to Anita14
20th Apr 2019 18:05

Yes of course. Excellent idea and thx for that and especially as both clients have their account details!

I have trained them well.

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to lionofludesch
20th Apr 2019 15:43

lionofludesch wrote:

That is ******* off the scale lunacy.


It is what happens with large organisations. The problem is that if you have not had a new direct debit set up then there won't be a new phone number to contact about it.

In the end HMRC will know that they haven't been paid.

We know that this sort of thing has been happening. It probably has a substantial cash flow impact.

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to johnhemming
20th Apr 2019 16:41

johnhemming wrote:

lionofludesch wrote:

That is ******* off the scale lunacy.

It is what happens with large organisations.

Oh - that's all right, then.

No, on second thoughts, it's ****** off the scale lunacy.

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to lionofludesch
20th Apr 2019 16:57

It is neither all right or off the scale lunacy.

There will always be problems with new computer systems. People in organisations tend to understand their day to day responsibilities, but don't know what everyone else is doing.

Hence change is difficult.

I am surprised people have managed to go for 2 months before being chased for a missing direct debit, but it isn't really surprising that a few things have gone wrong.

In a large organisation you will almost always have to escalate contacts to bring together knowledge from different parts of the organisation.

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to johnhemming
20th Apr 2019 17:07

johnhemming wrote:

lionofludesch wrote:

That is ******* off the scale lunacy.

It is what happens with large organisations. The problem is that if you have not had a new direct debit set up then there won't be a new phone number to contact about it.

In the end HMRC will know that they haven't been paid.

We know that this sort of thing has been happening. It probably has a substantial cash flow impact.

You've not been listening to Mel Stride, have you ?

Things are going well. No problems so far.

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to lionofludesch
20th Apr 2019 17:37

I have looked up his statement from February
https://hansard.parliament.uk/commons/2019-02-19/debates/802C22E7-88AF-4...

I don't think it says there have been no problems. There always are some problems with a new system.

He does say "The pilots have progressed well and the full functionality of MTD has been tested with a wide range of different businesses, "

I see nothing wrong with that statement.

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20th Apr 2019 14:57

This has happened for other people. What proportion of people it happens for is unclear. It may be something to do with the timing as to when people join MTD.

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to johnhemming
23rd Apr 2019 08:08

I can't believe you're being quite so understanding. People on this forum have being predicting for ages that MTD4VAT was heading for the rocks and there is little sign yet that they are changing course.

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to John Stone
23rd Apr 2019 09:48

I’ve said thinks that are bad about Mtd and have been severely reprimanded by a number of aweb members like I’m committing treason !

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to GHarr497688
23rd Apr 2019 12:03

GHarr497688 wrote:

I’ve said thinks that are bad about Mtd and have been severely reprimanded by a number of aweb members like I’m committing treason !


I think you are right to highlight the difficulties faced by people who have historically done manual cashbooks.

What I have found is that a lot of people who are used to Excel or other spreadsheets have no real problem doing MTD Digital Links.

However, there is quite a bit of a learning curve for people who have done manual books. That is why I think an online cashbook which does not require any setting up or configuration is the best for people who do manual books. What it loses in flexibility it gains in simplicity.

I have tried scanning and ocring the data, but converting handwriting is quite unreliable. Hence I think a really simple and basic online cashbook is best.

A lot of people are really stressed about MTD, but in the end there are solutions.

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to johnhemming
23rd Apr 2019 10:00

johnhemming wrote:

This has happened for other people. What proportion of people it happens for is unclear. It may be something to do with the timing as to when people join MTD.

They join when they're forced to join.

Perhaps that's why HMRC shouldn't have insisted that everyone jumps in the deep end.

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to lionofludesch
23rd Apr 2019 11:54

lionofludesch wrote:

They join when they're forced to join.


I mean when in the month they join. It might be if they are close to when they last paid that the direct debit instruction is lost.
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By Mitch
23rd Apr 2019 13:54

I submitted my first MTD Vat return on 1 April for quarter Jan-Mar. The VAT payment due in respect of this is due to be taken around 10 May. However, on 11 April I received an email from HMRC advising that my DD payment hasn't been collected and that I should pay it by bank transfer, debit card or corporate credit card.
I phoned HMRC to query this and when I eventually got through to them they had no idea why I'd been sent the email. They confirmed that my DD was still in place and that I didn't need to take any further action. Just not sure whether to believe them or not!!

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to Mitch
23rd Apr 2019 14:02

I filed my return and have had no email confirming receipt or anything telling when the DD is due . No other company would get away with this . Is it bit worrying when the system is now fully law . What will happen as more and more people start contacting Hmrc for advice ?

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to Mitch
23rd Apr 2019 14:03

Mitch wrote:

I phoned HMRC to query this and when I eventually got through to them they had no idea why I'd been sent the email. They confirmed that my DD was still in place and that I didn't need to take any further action. Just not sure whether to believe them or not!!

The trouble with phoning is that you have no concrete proof of what was said.

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