This was a technical error on our old platform incorrectly mapping transaction and refund charges to a VATable charge, when they should not have been VATable.
Yes. When you moved to our new platform the issue ceased as our new platform is correctly applying the ePDQ transaction processing and refund charges without VAT.
The mapping has been incorrect for approximately seven years.
HMRC only allows us to amendment our respective VAT returns back to that date. Assuming you are VAT registered, you’ll have already claimed any VAT back for the period prior to that.
Assuming you have already reclaimed the VAT you’ve paid us on your previous VAT returns, this shouldn’t have made any difference.
Not necessarily. If your accountant prepares your VAT return, they may notice the credit on your statement and ask you about it, but they should be fully aware of how to post the credit back to your VAT account.
No, there’s no need for you to contact HMRC about this. Guidance on how to adjust your VAT account can be found in the VAT Public Notice (Public Notice 700) at gov.uk/guidance/vat-guide-notice-700
Please note that we cannot provide tax advice and you have sole responsibility for the management of your organisation’s tax affairs.
If your business is not VAT registered, or wasn’t during this period, when you receive our VAT credit to your statement, then this credit will be reimbursing your business for the VAT we’ve been charging you incorrectly since April 2014. It will be set against, and therefore reduce, your future fees from us.
As you are not/were not VAT registered, you wouldn’t have previously claimed this VAT back from HMRC, so there is nothing to return to HMRC. So effectively the credit is being returned to your business.
No, we are not required to do so, as in most cases we expect our customers will have already claimed the VAT back so will not be out of pocket. So we’re merely making this adjustment via our VAT return.
No. As you may have already claimed any VAT you paid us from HMRC on your historic VAT returns, we need to adjust this as a VAT credit on your invoice.
If your business has never or has only partially claimed the VAT back on our invoices then you are entitled to further refunds for any VAT we incorrectly charged you prior to 1 April 2014. If this is the case, please write to us with answers to the below questions at ePDQVATEnquiries@barclayscorp.com and we will look into this for you and provide a response within 28 days. The Business you are claiming for must be the one to which we invoiced.
Please note if the Business was partially exempt but still recovered the VAT we charged erroneously in full, it is not entitled to a refund from us as it will have recovered the VAT from HMRC through its VAT returns.
Below are some FAQs to answer questions you may have.
The ePDQ transaction fee will now apply to the volume of all transactional activity through the ePDQ gateway. Currently it is only applied to your settled transactions.
The change is coming into effect from the 1St August 2018 but will be reflected in your September statement. Please note that your attempted transactions made in August will appear in your September statement. This arrives in early October because we are changing to billing you a month in arrears.
This change will more accurately reflect the way you use the gateway and the associated operational cost. This is consistent with how other gateway providers charge.
You can still view transactions via the ePDQ back office portal. The actions which will be charged for (but are not limited to) are:
ANV - Refund
AUT - Authorised
RES - Authorisation
RFD - Refund
RFS – Partial refund
SAS – Last capture (when 2 steps or several captures based on 1 bigger amount authorised)
STO – Declined by fraud
VEN - an approved and settled transaction
It is possible for a transaction to go through several actions e.g. being declined before going on to be successfully authorised. If the transaction remains in the same PayID throughout this, then it will appear as 1 transaction on MI reporting but would be charged more than once.
You can view all attempts on a transaction, helping to reconcile to your invoices, by following the steps below;
The rate of your ePDQ transaction fee is remaining the same. The transaction fee is now being applied to all of the scenarios as per above. Therefore, the total fee will be dependent on the volume of attempted transactions your business does. Your total ePDQ transaction fee could be reduced if you decrease the number of attempts for each settled transaction. This will vary for each type of business.
You can amend the default settings in ePDQ to reduce unnecessary charges. In particular, the default settings for recurring payments is set to attempt a transaction up to 5 times. This could mean that you could be charged up to 5 times per transaction. You might want to reduce this to a more sensible volume and explore all other config settings around the number of attempts which can be made per transaction.
These can be found under Config / Technical Information / Global Transaction Parameters Section of the back office portal. The link to the portal is https://support.epdq.co.uk/en/login