Updates to paying VAT by Direct Debit

HM Revenue & Customs (HMRC) are in the process of updating their online systems, which will involve migrating businesses to a new platform. This will impact businesses who have a Direct Debit set up to pay their VAT.

Banking regulations require HMRC to hold a valid contact point for businesses using Direct Debit. This is so that they can notify people in advance of the date VAT payments will be taken from their account and the amount.

Businesses who wish to continue paying their VAT by Direct Debit will need to supply an email address to HMRC prior to their account being migrated to the new platform. This must be the business’ email address, it cannot be their accountant’s.

If an email address is not supplied, HMRC will cancel the Direct Debit. An alternative payment method would then need to be used.

What do I need to do?

If you want to continue to pay your VAT by Direct Debit, log into your HMRC account online & provide your email address as soon as possible.

If HMRC have moved your account onto the new platform but you haven’t yet provided your email address, then when you next log on you will be automatically prompted to set up a new Direct Debit and provide a contact email address.