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HMRC & Faster Payments

HMRC & Faster Payments
Paul Chappell
Written by Paul Chappell
Thursday, 02 December 2010 12:20

Something to watch out for if you are paying HMRC electronically.

HMRC do not use 'faster payment' which means that an electronic payment to HMRC takes 3 or 4 days to clear, and this needs to be factored in if you are making a payment by bank transfer. With electronic payment now mandatory on some taxes, and interest and penalties for late payment for others, this is a key point to bear in mind.

If you pay by Direct Debit then the same considerations are not a worry as HMRC debit your account at the appropriate date, likewise if you pay via HMRC's online bill payment service using a debit card the payment will be with them immediately. The problem is with BACS type payments. It is worth remembering that late CIS/PAYE payments now attract penalties from the second default of any tax year onwards.

Paul Chappell

Paul joined Dataplan from HM Revenue and Customs in 2007 and runs our PAYE compliance and investigation services.

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