Terms & Conditions: Payment of VAT Online Returns by Direct Debit (DDI)

These are the Terms & Conditions for paying VAT due on returns by Direct Debit (DD).

Registration and enrolment for the VAT Online Return Service either via the Government Gateway, or the HMRC website are a requirement of paying by DD. A return for which a DD is to be collected must be made using the VAT Online Return Service. The separate terms and conditions for that service must be complied with. DD is not an approved method for payment of B2G VAT Returns.

It must be ensured that the Bank/Building Society will accept a Direct Debit Instruction (DDI) for the nominated Bank account. DD collections can only be made subject to their acceptance of the DDI.

The submission of a DDI will act as confirmation that these Terms & Conditions have been accepted and will be complied with.

When submitting a DDI online, the sender must be authorised to sign for the Bank account. The sender must be the sole signatory for the Bank account, one of multiple signatories for the Bank account, or authorised to sign on behalf of all the other signatories. The sender must also be acting in accordance with the mandate that they have with the nominated Bank/Building Society.

The Bank account from which the DD is to be collected must be a sterling Bank account registered in the UK.

Only the amount declared on the VAT Online Return will be collected by Direct Debit. Other VAT liabilities (for example, surcharge, penalties or interest) must be paid by alternative payment methods.

There could be a financial penalty if the completed return and all of the VAT payable are not received by the dates they are due. If, for any reason, the Direct Debit collection fails, an alternative method must be used to pay by the due date.

The DDI cannot be cancelled or amended via our online service. Instead, the Bank should be informed and they will automatically advise us of any changes. This includes when the DDI is being transferred to a different Bank, or when it is transferred to a different branch within the same Bank. We will only be able to make amendments notified via your Bank.