I want the bank to talk to me!

trailingspouse

Long story short - became VAT registered in 2011 and set up a direct debit in favour of HMRC accordingly. After a few months of trading and paying VAT our market shifted, and we were being paid entirely by EU clients, and receiving no money at all from UK-based clients, therefore 'Reverse charges apply' and we charged no VAT on our invoices.

Just recently, things have changed again, and we're now trading mostly in the UK, and we are needing to charge VAT again. Fine, I think, I know we have a direct debit set up, all is well. But it turns out that 'someone' has cancelled the direct debit as it was unused for over a year. HMRC says the bank cancelled it, bank say it happens automatically and blah blah.

So, I set up a second direct debit. Now, this next bit is my fault, I know - I put money aside for the VAT into a separate account, and I set the direct debit up to come out of this account, forgetting that it was a savings account and therefore a direct debit couldn't be set up. I did it online, no problems, and received a standard acknowledgement from HMRC saying that the direct debit had been set up, and giving me a reference number. I now know of course that it wasn't set up, but hey. It certainly looked like it was.

As a result I've been late paying the VAT twice now - and apart from stupidly forgetting that our VAT was in a savings account, it really hasn't been my fault!! We get next to no interest, so it's an easy mistake to make!

The bank has stuck £30 into the account, as a goodwill gesture, but I'm less than impressed with them.

Now, my question - why did I at no time receive anything from my bank, either telling me that the original direct debit had been cancelled, or that HMRC had tried to take money from it and been unsuccessful, or that I'd tried to set up a direct debit on the wrong type of account? Am I wrong to think that some sort of communication should have happened?

sinizterguy

Those facts pertaining to the direct debits were communicated to you - at the time you signed up for the accounts.

I am sure you did not read them (in any detail, if at all).

DDs are normally cancelled if not used for more than 12 months - so nothing wrong done there.

I don't think the bank should necessarily have sent you more communication. Others may disagree.

Mistral001

I am not familiar with HMRC DD's but do they take, or in this case, attempt to take the money out of the account on the deadline for paying? Was that the way it was set up or was there time to inform you that the DD was refused before the deadline?

trailingspouse

There was opportunity at the time I was setting up the direct debit to tell me that I was trying to set it up for the wrong account. All I got was an official notification that it had been set up.

I noticed that no money had been taken about 3 weeks after it should have gone out - I then rang HMRC and told them, and made other arrangements to pay.

I'm not best pleased with HMRC either - the acknowledgement that the direct debit was successfully set up came from them.

Yes, yes, I know it's all in the t&c's - my point is that, having quite obviously got it wrong, it would be nice if the bank had mentioned it to me. I would move banks, if I thought any of the others were any better.

sinizterguy

trailingspouse wrote: »

There was opportunity at the time I was setting up the direct debit to tell me that I was trying to set it up for the wrong account. All I got was an official notification that it had been set up.

I noticed that no money had been taken about 3 weeks after it should have gone out - I then rang HMRC and told them, and made other arrangements to pay.

I'm not best pleased with HMRC either - the acknowledgement that the direct debit was successfully set up came from them.

Yes, yes, I know it's all in the t&c's - my point is that, having quite obviously got it wrong, it would be nice if the bank had mentioned it to me. I would move banks, if I thought any of the others were any better.

HMRC will put a request through to set up the DD .... They will not get instant confirmation from your bank.

So, they gave you an acknowledgement that you have given them some details to set up a DD.

If the DD failed, then HMRC should have written to you. Maybe they did. Maybe they hadn't gotten around to it yet.

I still no fault with the bank in this.

Mistral001

What has the consequences been for missing two VAT payments, if you do not mind me asking? Have there been any fines or interest charges?