VAT Payment Deadlines

 

From 1 April 2010 all cheque payments made by post will be treated as being received by HMRC on the date when cleared funds reach HMRC’s bank account.

This means that you must allow enough time for the payment to reach HMRC and clear into HMRC’s bank account no later than the due date shown on your VAT Return. 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.
 
We recommend that VAT is paid either by:
1) Bacs/Internet banking so as to gain an extra 7 days credit
2) Direct Debit so as to gain a further 3 days credit
3) Or by Direct Debit through the Annual Accounting Scheme where payment is by equal monthly instalments based on the previous year's liability.
 
Call us now to discover the best way to gain that extra credit.