Value Added Tax Act 1994 section 58B

Payment by cheque

Section 58B deals with the consequences of making a VAT payment by cheque in contravention of regulations, specifically when the payment is deemed to have been made.

• Regulations may require VAT payments to be made by methods other than cheque
• If a cheque payment is made in breach of these regulations, the payment date is penalised
• Instead of being treated as paid when HMRC receives the cheque, payment is only recognised when the cheque clears
• The definition of when a cheque "clears" is set out in regulations under section 95(1) of the Finance Act 2007