HMRC Faster Payments

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HMRC have issued a reminder on their Website that electronic payments are due by the 22^nd monthly following the end of the relevant month or quarter.  There is a dual purpose to this reminder:

Firstly

22 January 2012 is a Sunday.  Therefore, as the remittance for Month 09 / Quarter 3 must be cleared funds at HMRC by this date, payments must be made by the banking day before this, i.e. 20 January 2012.  However,

Secondly

From 16 December 2011, HMRC now accepts payments using the Faster Payments Service.  There are three types of Faster Payments:

1. Single immediate payments – where the instruction to make a payment is made by ‘phone or Internet and the request is for it to be made immediately.  This type of Faster Payment can be made 24 hours a day, every day (24/7)
2. Forward-dated payments – where a payment instruction can be made to leave a bank account at a specified date in the future.  This may be available on a non-banking day
3. Standing Orders – where a regular payment is made for a set value on a set date.  This type of Faster Payment is only available on banking days

Also, only your individual bank that can confirm exactly what Faster Payments can be made, the availability and whether there are any daily limits that apply.

Comment

Faster Payments is another option available to employers for paying their PAYE/NICs liability.  However, do ensure that your own bank is capable of making the Faster Payment you need to ensure the funds are cleared by the 22^nd, if paying electronically.  This is especially important where the 22^nd is a non-banking day, like this month, and not all of the Faster Payment methods would be appropriate.  Further, you will need to be familiar with your bank’s daily limits.

Also, be sure to check that you are using the correct bank account information for HMRC.  This is different depending on whether your Accounts Office is Shipley or Cumbernauld.

Further Information

• HMRC  – Special Notice about electronic PAYE payment dates
• HMRC  – PAYE/Class 1 National Insurance – bank account details

Tags: Faster Payments, Forward-dated payments, HMRC, Single immediate payments, Standing Orders

This entry was posted on Friday, January 13th, 2012 at 14:25 and is filed under HMRC. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.