Paying VAT by Cheque - Changes From 1 April 2010

19/04/2010

HM Revenue & Customs have recently published VAT Notes, which have implications for VAT registered pension schemes. An important change has been made regarding VAT payments made by cheque. Previously these payments were treated as received on the date the cheque arrived at HMRC. From 1 April 2010, the payments by cheque must be cleared in their account by the due date of the VAT return.

In our processes, we will now endeavour to ensure that cheques are sent to HMRC with plenty of time for the funds to clear in their account. Late payments may incur a surcharge levied by HMRC.

We are investigating registering with HMRC so that future pension VAT payments might be able to be made online and thus streamline the process.