HM Revenue and Customs (HMRC) has announced that, as from 1 April 2010, all cheque payments by post will be treated as being received on the date when the cleared funds reach HMRC’s bank account.
This means that VAT businesses which can still pay by post must allow enough time for the payment to reach HMRC and to clear no later than the due date shown on the relevant VAT return.
HMRC has said that this change does not affect any cheque payments made by Bank Giro.
Any cheque payments that do not clear by the due date could be liable to a surcharge for late payment.
HMRC has reminded businesses that electronic payments, even when not obligatory, give firms up to seven extra calendar days to pay or, if the payment is made by direct debit, at least ten extra calendar days.