Time for funds to clear

brightk9

Apologies if this is the wrong category or of it's been asked before (I couldn't find it). 

Where do we stand on companies (in this case a nursery) asking for funds to be released earlier as it's takes 5 days for funds to clear to them? Is it my responsibility to ensure payment is therefore sent 5 days earlier or is it tough titties to them, it cleared NS&I the day before their deadline?

sheramber

Not sure whst you mean.

Is it a case of you need to pay nursery fees by a certain date but it takes 5 days for your money  to pay the fees to be  available from NS&I ?

Lomast

If payment is due by a date then it should clear by that date. Ns&I accounts are not really intended for making payments from, a normal bank account payment would clear much quicker

Hoenir

Perhaps give us some context as to why the issue has arisen. 

brightk9

NS&I are the tax free childcare company, so I have to use it. The nursery (as well as putting up fees 48%, after a previous price hike in January) are moaning about it taking ages to clear. So is it my responsibility to have it cleared by 1st or having left NS&I by the 1st. If the former, we won't have had our pay in time and they won't have provided the bill in time. So just wondering where we stand legally so we can either comply or complain. 

BoGoF

It's your responsibility to ensure it's paid by the due date regardless of method of payment.

If you were a business and something was due to be paid on the 1st would you be happy if it was continuously late?

Lomast

You have to make sure cleared funds arrive by the due date.

Brie

I don't see how they can expect you to pay a bill they haven't yet provided.  Aren't bills normally "to be paid X days after issue" or similar?

brightk9

Our bills read "If payment is made by any childcare tax incentive scheme, we require these to be set up to ensure receipt of funds are released on or before the 1st day of the month to which they relate."

born_again

A lot will depend on date due.
As faster payments have a time frame of by the end of the next working day (although often instant) if the payment is due on Monday then you need to ensure it has left your account by Thursday to make sure it does arrive by Monday.
Not all banks offer payments sent straight away, as their systems do not work 24/7 so a payment made say after 18:00 may not actually leave till the next day & that also works in reverse for receiving payments.

If you are paying from NS& i (National Savings & Investment) They fall into the above. Taking time to make payments, as their systems are archaic.

ThumbRemote

The long and short of it is that they are a private business and can request payment however they want. In turn you are free to take your custom elsewhere. 

While it's not ideal for you, could you make a double salary deduction one month, so there's a buffer in the NS&I account?