Skip to: main navigation | main content | sitemap | accessibility page

Paying Tax by the FPS

March 1st, 2012

Top Tax Tips

HMRC acceptance of FPS in time for SA Tax Payments deadline

Self Assessment Bills – just in time for the tax payment deadline of 31 January HMRC announced that they can now accept payments made using the Faster Payments Service (FPS). This ensures payments made from your account on one day will reach the HMRC account on the next day. Check that your Bank operates the FPS & get set up.

Under new regulations which came into force from 1st Jan 2012, the Payment Service Regulations (PSR), every bank must ensure that electronic payments made (including those made by telephone or by Internet) must reach their destination account one business day after the customer made the payment request. So with PFS & PSR operating together you can pay your tax bill of £99,999.99 or less on 30th Jan in a year & it will reach HMRC by 31st Jan.

 

 

Faster Payments Service

The PFS is also  very useful for paying HMRC PAY Tax & Employers NI on time & the payment can be delayed until the very last minute without being late & incurring penalties.

 

Further, extending its’ use to payment of Creditors & to Employees means that you can manage timely payments & hold onto your money for the maximum period of time without the Bank having it for the working day(s) they do whilst it goes through the BACS system.

 

It is fast & secure & its’ use expected to become widespread.

 

The content of this article is for general information only. It should not be relied on and action which could affect your business or personal circumstances should not be taken without appropriate professional advice.