Essex chartered accountancy firm Rickard Keen warning businesses which still make VAT payments by post that, since 1 April, all cheque payments are treated as having been received on the date when cleared funds reach the bank account of HM Revenue and Customs (HMRC).
This means that anyone paying by post must ensure they allow enough time for the payment to reach HMRC and for the funds to clear before the due date on the VAT return.
Rickard Keen tax partner Keith Bell said: “Any cheque payments that do not clear by the due date could be liable to a late payment surcharge, even if the cheque has physically reached HMRC by that time.
“HMRC has stated this change does not affect cheque payments made by Bank Giro. It has also reminded businesses that paying electronically gives firms up to seven extra calendar days to pay, or ten days if paying by direct debit.”
For more information, contact Rickard Keen LLP on 01702 347771 or visit www.rickardkeen.co.uk