Insufficient funds for direct debit transfer in bank account - what happens next?

Feb 05, 2011 1 Replies

Dear experts,



I have a wee question I am sure you can help me with. I work as a free- lancer (self-employed) and registered for direct debit. The Inland Revenue tried to withdraw some nice chunk of money from my bank account recently but at that moment in time there were not enough funds in my bank account, so the transfer was declined. I immediately put some more millions into my bank account and tried to call the Inland Revenue to find out what would happen now. Alas, I gave up after 2 days of trying to get through to a real person....



My question is: What will happen now? Will the Inland Revenue try to withdraw their tax money again? Will I be charged loads of penalties? If so, can I avoid this somehow? (As I said: I do have the money available now...) Or am I meant to pay my tax manually using their website? If so, is there a chance they might still try to withdraw the money by direct debit afterwards...



Thanks a million for your help in advance,



Jörg



Why not:

a. cancel the direct debit (which you can do at any time)

b. pay "manually" (using your debit card with BillPay or your bank's site to make a BACS transfer)

c. then set up direct debit again a few days later if you wish?

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