1st April Payments

fred246

If you set up direct debits, standing orders or Bank Card Debits for the 1st April for payments into Pensions and ISAs do they always make it into the previous tax year? I was just reading someone talking about the easter bank holiday this year and wondered what everybody thought.

NottinghamKnight

Probably, this year would appear to be the worst tesr case. The 1st is a banking day so it should go through, the other thing to remember is that it may well vary between banks. Some banks, Tesco being one example I believe, process payments over weekends so you would need to check with your bank but probably easier to change a payment date, I would expect most regular payments to be made in the middle or more likely end of month in any case. 

eskbanker

From the sending bank's perspective, a payment due to be sent on the 1st could be delayed to the 5th by a four-day holiday weekend, but being received and allocated correctly by the recipient on the same day could be a different matter....

MDMD

eskbanker said:

From the sending bank's perspective, a payment due to be sent on the 1st could be delayed to the 5th by a four-day holiday weekend, but being received and allocated correctly by the recipient on the same day could be a different matter....

Monday 5th is a bank holiday too so some payments could be delayed to the 6th.....so anything that needs to be processed in 20/21 tax year needs to really be done by the 1st

https://www.gov.uk/bank-holidays

eskbanker

MDMD said:

eskbanker said:

From the sending bank's perspective, a payment due to be sent on the 1st could be delayed to the 5th by a four-day holiday weekend, but being received and allocated correctly by the recipient on the same day could be a different matter....

Monday 5th is a bank holiday too so some payments could be delayed to the 6th.....so anything that needs to be processed in 20/21 tax year needs to really be done by the 1st

https://www.gov.uk/bank-holidays

Yes, my comment was a generic one rather than relating specifically to this year - there is no reason for a payment due to be sent on Thursday 1st April this year to be delayed by any date-related issues, although the wider point remains that if it wasn't received and processed by the recipient that day then the next working day would be the 6th, which could potentially cause issues....

Apodemus

NottinghamKnight said:

Probably, this year would appear to be the worst test case... 

Perhaps not. Bank of Scotland credits the interest on my account as a single payment on 5th April covering the previous tax year. That is fine most years, but 5th April '20 was a Sunday, so the payment was made on Monday 6th - technically into the new tax year. I'm afraid I still recorded it as being in the 19/20 tax year for my tax return, rather than trying to remember to declare two years next year. It annoys me that banks don't understand the implications of their actions, but I doubt if HMRC will "send me to the tower" for this sin!

NottinghamKnight

Apodemus said:

NottinghamKnight said:

Probably, this year would appear to be the worst test case... 

Perhaps not. Bank of Scotland credits the interest on my account as a single payment on 5th April covering the previous tax year. That is fine most years, but 5th April '20 was a Sunday, so the payment was made on Monday 6th - technically into the new tax year. I'm afraid I still recorded it as being in the 19/20 tax year for my tax return, rather than trying to remember to declare two years next year. It annoys me that banks don't understand the implications of their actions, but I doubt if HMRC will "send me to the tower" for this sin!

Yes, but that's out of your hands, what account do you have that does this? Vantage accounts will be crediting monthly and I think it's been a while since they had any worthwhile accounts than regular savers. Normally best to wait until the interest certificate is sent out/ made available which takes a couple of months.