The Lemon Fool

In the interests of balance, I would like to share the following.

I have to pay an amount of self assessment tax on account twice a year (31 Jan & 31 July). I have used HMRC's direct debit method of payment for a while. I have a direct debit mandate in place with HMRC, then each time I log in to the HMRC pages on gov.uk and create a one-off direct debit for 31 Jan or 31 July as applicable for the correct amount and up to now has worked well.

Yesterday, I created a one-off direct debit for the amount due on 31 July (they need about 3 working days notice and you can set the date of the payment as well). But later I realised I had typed in the wrong amount: doh! I had visions of sitting on some blackhole phone line for hours to get it amended. But No. I logged back into the HMRC pages on gov.uk, the (incorrect) one-off DD payment was visible with an "Amend" button. It all worked smoothly, and I got a confirmation back saying "You have successfully amended your payment plan" with other confirmation details. All fairly swift and painless (I hope I'm not eating my words later). I have to say I was expecting a tussle to get it changed, but it was actually fairly easy and painless.

Tangential to the above, I used the "Pay by bank account (new). Approve a payment to come straight from your bank account" option for the first time a few days ago. Worked fine. Required me to go through the online authorisation process for my bank and an SMS passcode to give consent and HMRC pulled the on-account amount out of my current account. Quickly done and dusted....

https://www.gov.uk/pay-self-assessment-tax-bill/approve-payment-through-online-bank-account
https://www.globalgovernmentfintech.com/one-small-website-button-one-giant-leap-for-payments-to-government/

mc2fool wrote:Tangential to the above, I used the "Pay by bank account (new). Approve a payment to come straight from your bank account" option for the first time a few days ago. Worked fine. Required me to go through the online authorisation process for my bank and an SMS passcode to give consent and HMRC pulled the on-account amount out of my current account. Quickly done and dusted....

I was well impressed by that too. I used the phone app bit. Scan QR code, stick thumb on phone for approval. Paid. Very quick and easy.

Gryff

gryffron wrote:

mc2fool wrote:Tangential to the above, I used the "Pay by bank account (new). Approve a payment to come straight from your bank account" option for the first time a few days ago. Worked fine. Required me to go through the online authorisation process for my bank and an SMS passcode to give consent and HMRC pulled the on-account amount out of my current account. Quickly done and dusted....

I was well impressed by that too. I used the phone app bit. Scan QR code, stick thumb on phone for approval. Paid. Very quick and easy.

All very high tech and impressive. I have no online banking and no HMRC online account. So it is a paper return and an annual cheque for me! For as long as they allow it anyway.

Not sure I would like the idea of the taxman just being able to go into my bank account and take money out. Although I assume there are safeguards.

Lootman wrote:

gryffron wrote:I was well impressed by that too. I used the phone app bit. Scan QR code, stick thumb on phone for approval. Paid. Very quick and easy.

All very high tech and impressive. I have no online banking and no HMRC online account. So it is a paper return and an annual cheque for me! For as long as they allow it anyway.

Not sure I would like the idea of the taxman just being able to go into my bank account and take money out. Although I assume there are safeguards.

You have to give explicit permission, using your usual online authorisation method & credentials for your bank account, and it's a one-off just for that transaction.

No big issue but I just schedule the appropriate payment in my banking app (and then need to make sure I have sufficient funds in the account). For some reason I can’t quite fathom I don’t like the idea of HMRC helping themselves from my bank account (even with explicit permission).

Best wishes,

Steve

Steveam wrote:No big issue but I just schedule the appropriate payment in my banking app (and then need to make sure I have sufficient funds in the account). For some reason I can’t quite fathom I don’t like the idea of HMRC helping themselves from my bank account (even with explicit permission).

They're not "helping themselves", that's a mis-characterisation. What is happening is pretty much what you do except that the details of how much to send, where to send it, reference etc are pre-populated (and it's scheduled for straight away, on your authorisation). You then still have to do your bank's authorisation and approval things, login credentials, fingerprint, one time passcode, etc, to send it.

It shows on my statement as Third party payment made via faster payments to HMRC self assessment Shipley reference xxxxx so it's just a way to set up a faster payments transfer that's, umm, faster.

The people who can help themselves from your bank account are all the ones you've authorised direct debits to....

mc2fool wrote:They're not "helping themselves", that's a mis-characterisation.

I agree. The low tech equivalent would be a pre-printed cheque with all the details ready filled in for you. All you have to do is sign it. That’s not so scary is it?

Gryff