Cancellation of VAT direct debits where no email address – HMRC letters

HMRC will be writing in June to businesses who currently pay their VAT by direct debit, but for whom they do not have an email address.

To comply with UK banking regulations, HMRC need an email address in order to take payments by direct debit.

The letters will inform the recipient that their VAT direct debit will be cancelled between July and November, and advising them that, if they want to continue to pay by direct debit, they will need to set up a new instruction via their Business Tax Account.

Where businesses have joined the VAT deferral new payment scheme, the direct debit via which they pay off their deferred VAT is separate and will continue unaffected by this change.

The letters will not be copied to agents.  However, HMRC have provided us with examples of the letters which will be sent to MTD and non-MTD businesses.

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