Business News
Urgent announcement on VAT payments made by cheque
Nick Frost of Lambert Roper & Horsfield, is warning businesses to be aware of the new rules surrounding VAT payments, which come in to effect from April.
As of April 1 2010, HM Revenue and Customs will treat all VAT cheque payments, sent by post, as being received on the date that cleared funds reach its bank account, and not the date the cheque is received.
This means it is vital that you prepare your VAT payments early to allow sufficient time for them to reach HMRC and to clear no later than the due date shown on your VAT return.
Businesses need to be aware of these changes as they run the risk of incurring a surcharge for late payment if cheques are cleared after the due date.
It is important to remember that cheques take three working days to clear, and early preparation is vital to avoid unnecessary charges.
If you would like some expert assistance with the completion of your VAT return, or more information on the new rules regarding cheque payment, please call Nick on 01422 360 788.
