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VAT direct debit under MTD

HMRC being rather frustrating (hard to believe, I know)

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In common with many other businesses, quite a few of my clients cancelled their VAT direct debits to ensure that any VAT due was deferred until 31 March 2021. These now need to be set up once again. You'd think this would be easy, but it would appear not to be the case!

I know agents are no longer allowed to do this on behalf of clients, and this has been confirmed by me logging into our old agents account (no option to set up the DD) and our online services account (again, not an option), but how are clients expected to do this? 

According to HMRC this can be done through the clients own business tax account, but I don't think many/any of my clients have one. I've just tried to set one up for a client, but was told that they were already registered via another MTD account (i.e. mine). 

Does anybody have any ideas how this could be sorted out?

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By ireallyshouldknowthisbut
24th Jun 2020 10:17

Client needs to set up a BTA

You are not permitted to impersonate your client.

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By tom123
24th Jun 2020 10:41

Are we certain no 'arrears' will be collected?

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By jon_griffey
24th Jun 2020 11:08

This is yet another example of HMRC trying to hobble agents ability to act for their clients. We are told not to log into clients BTA's but when you have say a remote client who is not computer literate and/or has no interest in setting up a BTA it makes the situation impossible. The ability of agents to set up VAT d/d's must have been about for a decade or two. Has this ever caused anyone any problems? We are only trying to help HMRC collect tax.

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By mollyfatha
24th Jun 2020 11:14

I agree Jon, it's becoming impossible.

UPDATE: my client has tried to set up a BTA but has been told that he already has one for MTDfV! I guess this is our agent services account!?

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Replying to mollyfatha:
By ireallyshouldknowthisbut
24th Jun 2020 11:18

@molly, unless you are routinely impersonating your client it should not be anything to do with anything you have done.

They should try and gain access to it using the lost password facility, and failing all of that speak to tech help and they will just cancel the old account and you can set up a new one.

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Replying to jon_griffey:
By ireallyshouldknowthisbut
24th Jun 2020 11:16

I agree entirely Jon. For newly VAT registered clients we have been setting it up under the old system so as to get a DD in, then transferring to MTD 2nd quarter.

For clients with little interest, we have advised not cancelling the DD's as I know they wont ever get 'em set back up again. Infact half of my circular about cancelling VAT payments concerned setting them back up again. As a result only a handful of clients have done so.

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By claudialowe
24th Jun 2020 11:51

Same issue here, so have been emailing them the VAT online services direct debit mandate, and telling them to print it off, fill it in and post it off - whether this will be actioned in time for July payments who knows.................. actually I do know, and no it won't be set up!

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By mollyfatha
24th Jun 2020 12:10

Thanks @claudia, that's exactly what I need.

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By FayeBK
24th Jun 2020 11:54

Either your client needs to log in to their own Government Gateway account and set one up from there - OR you can print form VATC9 ( https://assets.publishing.service.gov.uk/government/uploads/system/uploa... ) which you can fill in the majority of and post to HMRC on their behalf, but the client needs to sign it and retain the tear-off slip.
The paper form seems to take HMRC less time to process than regular post but is still obviously much slower than setting up online. Would allow at least 5-6 weeks.

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By mollyfatha
24th Jun 2020 12:11

Great, thanks @Faye

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