Changes for HMRC customers who pay VAT by Direct Debit

HMRC are in the process of changing their VAT services, this will mean that existing customers will need to be transferred over to a new IT platform. All customers who currently have a Direct Debit set up with HMRC will be affected.

What action do I need to take?

By law HMRC must have a valid point of contact for customers who have a direct debit set up. Under UK banking regulations HMRC must inform their customers the date and amounts which will be taken from their accounts before they do so, hence the reason for having a point of contact. This cannot be done through an agent; this must be the email address of the person who owns the bank account in which the direct debit will be taken from. You must inform HMRC of your email address before they make the transition over to their new IT platform. If you fail to do this then HMRC will cancel your direct debit and you will need to pay your VAT bill by other means.

When will this happen?

HMRC have already started the migration of their systems and they aim to have the transition completed by September 2021. You should have been informed by HMRC back in May of these changes. If you wish to continue paying by direct debit you must inform HMRC before September. You can do this by logging into your Government Gateway or Business Tax account.

What if I miss the deadline?

Don’t worry if you miss the deadline you will still get the opportunity to set up a new direct debit. You will be prompted to do so the next time you log into your Government Gateway or Business Tax account.

If you want to make sure you keep up to date with new legislation, news from HMRC and get helpful tips and advice with regards to Sage 50 Software then please join our Facebook Community Support groups.


“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”

Share this...

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.