Welcome to VIable’s Back Office Monthly Breakdown. Every month, we’ll be identifying changes across Bookkeeping and Payroll, Human Resources and Marketing. These changes may impact your business, or give you food for thought on upcoming external factors that could affect your strategic approach.
In this series, every month we’ll release 3 mini-blogs around happenings in the Back Office, things to watch or best practice for your business to consider.
This month, there are changes to Direct Debit payments for HMRC VAT Services. We’re also looking at the impact of holidays and COVID-19, and how return to work and isolation periods may impact your business. And in Marketing, we are looking at the importance of knowing your customer as the Digital Marketing age rises.
We hope you take away something useful from this months’ update, and look forward to sharing more with you in the coming months.
This first update covers the HMRC VAT Services update, which comes in to effect between July 2021 and September 2021.
HMRC VAT Services Update
Changes are coming to the HMRC VAT Services, which involves migrating current customers to a new IT Platform. If you have an existing Direct Debit set up for VAT services, this may affect you going forward.
As part of the process, UK regulations require HMRC to hold a valid contact point for customers using Direct Debit services. The reason this exists is so HMRC can notify you in advance of payments from your account, and the amount being taken. For this reason, HMRC will now require customers to provide their (not their agent’s) e-mail address prior to their account being migrated.
If you do not supply this information between July 2021 and September 2021, you may find Direct Debits will be cancelled and you will have to find alternative means to repay your VAT.
What do you need to do?
To continue paying your VAT by Direct Debit, you must log into your Government Gateway or Business Tax account and enter your e-mail address as soon as possible. If you do not do this within the time period, you can simply log into your account after the end of September 2021, and set up a new Direct Debit.
We would advise that if you are currently repaying VAT via a Direct Debit, that you complete this process at your earliest convenience. It should not take long, but may save you a lot of hassle in the future, and ensure that you are continuing to repay VAT consistently without any disruption after the services update has occurred.
At VIable, our Bookkeeping and Payroll team conduct VAT Returns on behalf of our partner organisations. We offer a wide range of Bookkeeping services, ensure you can provide financial transparency and excellence all year round.
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