- posted 7 years ago
The end of our VAT quarter was 30th April, therefore I understood the return & payment to be due on 31st of May, but since we submitted the return and made the payment electronically by the Banco Franco Billpay service HMRC made great play of pointing out we could hang onto our cash for 7 extra days & save / earn interest at the Bank Yada, Yada, Yada. We have taken advantage of this for a few years now without any issue.
Now it all appears to have changed (ICBW). According to the HMRC website today the Vat return is due in on 7th of June just as before, but we have to make the payment by 31st of May. I.E. before the return has been done and no 7 days "grace" !
So ... First we have the good news
They've given us 7 extra days grace to get the return + payment to HMRC.
The bad news is Banco Franco & HMRC use up this 7 days grace and sometimes more, themselves. :-(
They say (somewhere else on the website) HMRC must recieve cleared funds by 7th of June, and the banking system takes 3 days to transmit the funds to HMRC, & HMRC's own computer system takes *another* 3 days to allocate the funds to our VAT account. IGWS neither Banco Franco nor HMRC work weekends or holidays.
Surely, if I make a payment by debit card the transaction is authorised instantaneously so how the hell does it take 6 - 9 days to make a simple payment by debit card.
Oh, IGWS there are severe financial penalties for making the payment minutes to microseconds late, and it's never their fault.
Maybe that's their motive.