From 1 April 2010 all VAT-registered businesses with a VAT-exclusive turnover of £100,000 or more, and all newly-registered businesses regardless of their turnover, must submit VAT returns online and pay electronically.

However, any business that is not caught by the above rules can still pay by posting HMRC a cheque, but all such payments are treated as being received by HMRC on the date when cleared funds reach their bank account, and not the date of receipt. As a cheque generally takes three working days to clear, sufficient time must be allowed.

If you do pay by post you need to:

1.) make your cheque payable to ‘HM Revenue & Customs only’ followed by your nine-digit VAT registration number and send it with your return using the pre-addressed envelope provided by HMRC.

2.) avoid attaching the cheque to the VAT return with paper clips or staples.