Service: VAT

HMRC to cancel VAT direct debits of those customers without registered email addresses

By Jo Reed

11 Jun 2021

If HMRC do not have your e-mail address, your VAT direct debit will be cancelled. This month, HMRC will be writing to those who currently pay their VAT by direct debit, but do not have a registered email address. 

In order to comply with UK banking regulations, HMRC need a verified email address in order to take payments by direct debit.

In the letters, HMRC will inform recipients that their VAT direct debit will be cancelled between July and November - advising them that, if they want to continue to pay by direct debit, to set up a new instruction via their Business Tax Account (BTA).

This does not affect those businesses who have joined the VAT deferral scheme, this direct debit instruction is separate and will be unaffected.

The letters will not be copied to agents. 

What you need to do:

If you registered for MTD

  1. When your current VAT period ends, log in to your BTA and select the VAT card.
  2. If you receive a prompt to set up a new direct debit, follow the on-screen instructions.
  3. If you do not receive a prompt, check again at the end of your next VAT period.
  4. You must setup a new direct debit at least 10 days before your next VAT payment is due.

If you are NOT registered for MTD

HMRC are going to cancel your VAT direct debit when they move your VAT record to a new IT system. This will be between July and November 2021.

This means, if you want to continue paying by direct debit, you will need to set up a new one using your Business Tax Account (BTA).

  1. When your current VAT period ends, log in to your BTA and select the VAT card.
  2. If you receive a prompt to set up a new direct debit, your VAT record has been moved.
  3. If you do not receive a prompt, check again at the end of your next VAT period.
  4. You must setup a new direct debit at least 10 days before your next VAT payment is due.

What will happen if you do not set up a new direct debit for VAT

If you do not set up a new direct debit and give HMRC an email address, you will have to pay your VAT using a different method. For more information about how to pay your VAT, click here.

It is your responsibility to set up a new direct debit and give HMRC an email address. Your agent cannot do this for you. If you miss your VAT payment, you may be charged penalties.

For more help

If you need to call HMRC, please note that they cannot take your email address over the phone. 

To log in to your BTA, click here. If you have authentication set up on your account, you will need to enter the access code sent to your mobile phone. For guidance about using your BTA, visit this website. 

Keeping up to date with the latest VAT legislation and news can be difficult. If you have further questions related to anything in this update, please feel free to contact our VAT team today. 

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