First VAT payment to HMRC

MarkH

Hi, I’m using Crunch Free plus the VAT module and have successfully made my first VAT return. On my HMRC account I’ve set direct debit as the payment method and I think HMRC don’t collect direct debit payments until 3 days after the due date so at the moment it’s showing as overdue on HMRC with an estimated late payment charge. Can anyone confirm that the direct debits do follow a few days after the due date and that you don’t get a late payment charge as a result? Thanks 🙂

Katie

Hi MarkH,

For VAT direct debits, I believe HMRC will usually start the collection on the filing/payment due date (7th), but as these take a few days to clear, you usually won’t see the money collected until around the 10th, depending on weekends. This is confirmed on HMRC’s website.

If it’s your first time paying VAT via DD then I would recommend double checking your online banking to make sure it’s all set up. Depending on who you bank with, you may be able to view pending payments.

All the best,
Katie

MarkH

Thanks Katie! DD looks good on my bank app so will keep an eye on it the next few days.

MarkH

@Katie - the DD went through today and all looks good on the HMRC site - just as you shared - many thanks! It’s been an interesting journey with the HMRC from first applying for a VAT in July, but working well with Crunch Free + the VAT add-on.

Katie

HMRC certainly don’t like to make it easy, do they? From registering for VAT, enrolling for MTD and then filing, it can be a bit of a minefield.

I am glad your payment is sorted and very pleased to hear our VAT add-on is working well for you.

All the best,
Katie

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