In order to comply with UK banking regulations, HMRC now require an email address to enable them to automatically collect direct debit payments.
The UK banking regulations state that HMRC are required to notify you in advance of any money being collected and email is the most efficient way to do this.
If you have a direct debit set up with HMRC to pay your VAT, you should receive a letter in the post notifying you of these changes.
However, we thought we would share with you the details of what you need to do to reinstate your automatic direct debit payments:-
- At the end of your current VAT period, log in to your Business Tax Account (BTA) and select the VAT card.
- If you receive a prompt to set up a new direct debit – follow the on-screen instructions to do so.
- If you do not receive a prompt to set up a new direct debit – repeat these steps at the end of your next VAT period.
- Your new direct debit must be set up at least 10 days before your next VAT payment is due.
If you do not supply HMRC with an email address, they will not collect your VAT liability automatically and you will have to pay using a different method. If you miss your VAT payment deadline, HMRC may impose penalties for late payment.
Full details of the changes can be found at www.gov.uk/pay-vat