As well as cheques drawn on your own personal account certain
other cheques are acceptable. Cheques drawn on either business or
partnership accounts may be accepted by a
scheme administrator as a payment by you provided
either the business or partnership confirms in writing that you
have reimbursed the amount or the payments have been made from your
share of the partnership profits.
Also a building society or bankers draft made payable to the
pension scheme will be treated as a contribution made by you.
A contribution paid by cheque is only valid pending clearance of
the cheque. The date of payment is normally the date you give the
cheque to the scheme administrator or, in the case of a cheque
which is sent by post, the date it is received by the scheme
administrator.
However, if the cheque is not subsequently honoured then a
valid contribution has not been made. This is of particular
importance if you make a contribution close to the end of the tax
year/
pension input period. If the cheque has to be
re-presented and subsequently clears after 6 April/ the final day
of your pension input period, the contribution will have been made
in a different tax year/pension input period and so could have an
effect on your taxation position.
| Glossary ( RPSM20000000) |
