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Markel Tax

11 Jun 2020

VAT deferral ends - restarting direct debits

We are seeing an increasing number of accountants experiencing difficulties in putting VAT direct debits back in place for clients as the 30 June 2020 expiry date of the VAT deferral period nears. 

Where an accountant’s client previously paid its VAT liability to HMRC via direct debits, in order to take advantage of the deferral, these had to be stopped as HMRC couldn’t close them down.  Now the deferral period is coming to an end, the VAT direct debits must be restarted.  Following migration to the systems for Making Tax Digital (MTD), some of the features on the agent account can now only be accessed from the client's own Government Gateway account.  Prior to MTD, the client would not necessarily have their own Gateway as agents could update bank details etc. However, following MTD migration, the client should have their own Gateway and only the client is able to use this to set up the direct debit.  The accountant can no longer do so through their agent access. 

Our recommendation is to leave enough time to communicate this to clients, for the clients to find time to attempt this and to resolve any queries arising in order for the direct debit to come into effect in time for the first VAT liability payment due to HMRC. 

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Tagged Value added tax (VAT) services COVID-19
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11 Jun 2020

VAT domestic reverse charge for construction services - deferred again