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Bank clearance before Tax payment cheques are registered

09 April, 2010

From the 1st April the HMRC, in an attempt to encourage electronic payments, will not register cheque payments as received, until they have been cleared by the bank. This means that cheques will have to be posted well in advance if late payment penalties are to be avoided.

VAT partner at Kingston Smith, Adrian Houstoun, said that businesses that relied on the HMRC’s efficiency to bank their cheques promptly, may now look at the electronic payment method more favourably, as paying by cheque would mean submitting it a week before the due date.

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