Do you have a VAT direct debit set up i.e. is your VAT payment made automatically? If you do then please read on…..
HMRC are changing their IT system for VAT over the next few months. As part of these processes they will be moving over the direct debit details. They intend to do this work between April 2021 and finish in September 2021. As part of this process, they need to check that they have a valid email address for each business and this must be for the business and not for an agent or accountant. If they do not have a valid email address then they will cancel the direct debit and companies will have to pay their VAT by an alternative method.
HMRC say that they will be writing to all affected customers and advising them of this change, including instructions on how they can provide an email address on their business tax account. Please DO NOT ignore this letter and contact us if you have any problems or you need any help making this change. The last thing that we want to do is assume that the VAT is being taken by direct debit and then find that the direct debit has been cancelled and the VAT has not been paid when it should have been!