A4.613 Methods of payment

A4.613 Methods of payment

Payment may be made by any of the means described below; further details are given on HMRC's website1. Where a payment exceeds the amount due by £1 or less (or £10 or less where any clerical intervention is required), the excess will not be refunded automatically unless it is noticed before the payment is processed2.

A. By post

HMRC advise that payments in cash should not be made by post. A cheque should be made payable to 'HM Revenue and Customs' only, with the payslip reference added. It should be sent with the payslip to the relevant Accounts Office, which will not normally issue a receipt unless requested to do so by a separate letter.

Various regulations3 provide that where a cheque clears on first presentation, the payment is to be treated as made on the day on which the cheque was received. For interest purposes HMRC treat the payment as received on the date when they receive the cheque. If the cheque arrives on a day when the office is closed, the date used will be the day when the office was first closed. In the example given on their web site, a cheque received on a Monday when the office is closed is treated as having been received on the immediately preceding Saturday.

HMRC have the power to make regulations, by statutory instrument, to treat payment by cheque for tax and VAT purposes as made only once the funds have cleared into HMRC's account4. This will remove

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