HMRC penalises cheque payments

Описание: Cheques sent to HM Revenue and Customs (HMRC) now need to clear by the due date, otherwise the person paying could end up incurring a penalty.

To avoid this, contractors who pay their taxes by cheque are being advised to switch to digital methods of payment, so that money transfer is much quicker.

The rules, which alter from the 1st of April, mean that freelancers wishing to pay off VAT bills by cheque will need to post them a week earlier than at present. This should ensure that they go through the HMRC system by the time they are due.

Contractors who employ the services of a PAYE umbrella company to handle their tax arrangements will not be affected, making the use of an umbrella company an even more attractive option.

If you need any advice about the new payment rules, join Excellium Umbrella today.