| HMRC are advising
businesses that from 1 April 2010 all
cheque payments by post will be treated as
being received by HMRC on the date when
cleared funds reach HMRC's bank account.
This change does not affect any cheque
payments made by Bank Giro.
Affected businesses will need to ensure
that they allow enough time for the
payment to reach HMRC and clear into
HMRC's bank account. This needs to happen
no later than the due date shown on their
VAT return.
According to HMRC's guidance:
"A cheque takes three bank working days
to clear. Bank working days are Monday to
Friday excluding bank holidays.
To allow for possible postal delays
(for which HMRC is not responsible) please
allow at least three working days for the
cheque payment to reach them and a further
three days for the payment to clear HMRC's
bank account. If your cheque payment does
not clear by the due date shown on your
VAT return you may be liable to a
surcharge for late payment."
From 1 April 2010 it will be mandatory
for all VAT-registered traders with a
turnover of £100,000 or more, plus any
newly registered traders (regardless of
turnover), to submit their returns online
and pay electronically. For guidance about
electronic payment methods use the second
link below or please do contact us.
Internet links:
HMRC guidance
HMRC how to pay VAT |
