I issued a cheque last September which has not been given to the bank for payment. I don't want to contact the person as our business relationship soured and wondered if the cheque is now too late for him to present. It is only just over 200 but do I have to make out another cheque if he asks?
Also wondered how to tackle in my accounts I am Vat registered.
Phil
Banks usually go with 6 months. If you owe him the money he can ask for another cheque to be made out.
I think the official limit is 3 years. However banks apparently set their own rules on this.
I have however heard of (nice :-) banks refusing payment of a cheque when it would have overdrawn the account on the basis that it had "expired" - in this case because they got the year wrong in January.
Brian
Brian
It also happens that banks will process old cheques. This may be because they are being nice to someone or it may be that, in this electronic age, they don't always look closely at the date. Cancelling the cheque could be justified on the grounds that it may have gone astray (if you believe in belts and braces).
It is unlikely but possible that the cheque will be presented. It is also unlikely but possible that the recipient will ask for a replacement (writing the original cheque confirmed the liability to pay the amount so a replacement should be issued). My guess would be that it fell out of a pocket and has been forgotten. Leave it in the accounts as an expense for a while. In a couple of years time the accountants will have got so fed up of seeing it on every bank reconciliation that they will ask for it to be written back.
Thanks for the advice
Phil
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