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Cancellation of VAT direct debits

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Businesses which pay VAT by direct debit but do not have an email address on record with HMRC will need to set up a new instruction via their Business Tax Account, if they want to continue to pay in this way. HMRC intends to write to affected businesses in June notifying them that, in order to comply with UK banking rules, HMRC must hold an email address to be able to take payments by direct debit. Existing VAT direct debits, where no email is held on the account, will be cancelled between July and November 2021. The ATT has published links to sample letters HMRC will sent to both MTD and non-MTD businesses explaining the changes and steps businesses need to take.

Direct debits set up for the VAT deferral new payment scheme are separate and will not be unaffected by this change.

Issue: 1534
Categories: News