OK, so lots of my clients have taken advantage of the VAT deferral on this quarter's VAT liability, and have cancelled their direct debit.
If the direct debit is set up again for the next quarter's VAT, to take advantage of the extra 5 or so days between 7th month and date DD is usually taken, will HMRC take the unpaid liability for the previous quarter too?
Just want to check HMRC will honour the deferral to 31 March 2021 for VAT returns submitted during the current quarter.
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I doubt it but who knows,HMRC works in mysterious ways, but why would one set it up now anyway? Depending upon how this all pans out it is not totally impossible we will be offered a second quarter's deferral at some point- I certainly have not reactivated our one yet.
They will not, in normal times they try to take the payment once and if the instruction is not in place, it's left to you to sort out payment.
I have a client who routinely stops and restarts theirs depending on the level of funds in the bank, they have to make the transfer themselves if there's not a D/D instruction in place on the due date.
I had always understood that the DD took the amount payable per the previous VAT return assuming it was submitted on time. I don’t think there would be any way for them to collect a different amount.
I am going to reinstate mine, if I manage to work out how.
I won’t be restarting mine until there’s more clarity on the current quarter.
Do we have firm guidance about how/when the deferred vat is to be paid?
https://www.gov.uk/guidance/deferral-of-vat-payments-due-to-coronavirus-...
The DD only collects the VAT on VAT returns submitted when the DD is in place. It does not collect any arrears on the account.
How does a client re-instate their VAT D/D??
I have several who have cancelled their D/D this quarter, but don't have online govt gateway accounts - they have never previously needed them, and one is very 'phobic about it. Is this the only way now - they all have to get themselves online one way or another...
Are you certain your clients don't have GG accounts? When VAT became compulsory online about 10 years ago, at the time I understood the only way to achieve this was to setup GG accounts for each client and through those accounts appoint us as agents. After setting up each GG account I also setup the DD. My understanding is there is no other way to comply with online VAT returns though I'd welcome being corrected. I also understood this was the only way to setup a DD.
Don't think that was the case. Fairly sure we could apply through our own agent's accounts and client would get a letter with a code starting with VT which you would then input back into the agent's account. Same as SA and CT.
I suppose the advantage of doing it your way Wanderer is it is less work. The advantage of doing it my way is instant access: no need to wait for a code in the post, and you could view the client's VAT account.
Wanderer, how would the DD be setup with your method?
Thank you very much for your post in reply to mine.
I am pretty sure that I do still have a few who don't have a GG account, though what you say does sound logical, so I am now questioning myself. It's difficult to remember now, quite how these things happened. I think I will cross that bridge when I come to it now, as otherwise I could waste a lot of time - the clients in question definitely never use their accounts, even if they do have one, so login details will probably have been lost.
(Thought I'd posted this this morning!)