Cash on Delivery

Change
Earlier this year the Taxman decided to let us know that ordinary taxpayers could no longer by handing over a cheque or wad of cash at the local tax office. Instead you’ve got to head into a post office or bank with your tax payment slip. What’s wrong with that? Well, funds can take up to 4 days to reach the Taxman’s account, so those who pay at the last minute will find that their going to get charged interest on late payments.

Withdrawal
The Taxman has decided to withdraw money handling facilities at his local offices from close of play on December 31st 2005. As you’re probably aware, this is 31 days before the biggest tax payment day of the year, when the balance of income tax due for 2005/6 and all Capital Gains Tax must be paid. It also happens to be the deadline for submitting your 2005 self-assessment tax return. The notice hasn’t exactly made front page news, many people might not even know about it, so people who go off on the last few days to pay off their tax are suddenly going to find that this is no longer possible!

Luckily
However, the Taxman has decided to postpone this change in policy until February 2006. This streak of common sense will hopefully ‘save the bacon’ of many tax payers and prevent unnecessary interest on late payments. Tax due on the 31st of January 2006 can still be paid at the tax office, but in future you’ll have to head into town, post a cheque or pay online allowing sufficient time for the funds to reach him. Hopefully the Taxman will also decide to make this change in policy common knowledge so that late payments and interest can be avoided on the 31st July 2006.