Post dating cheques uk
Has the law changed recently so that I am not allowed to post-date a cheque?In general, banks do not charge cheque writers for returning a cheque unpaid because it is post-dated.Two potential reasons for this include: In most cases, you can deposit or cash a postdated check at any time.
If you’re unwilling or unable to pay your bank to monitor your account, you’re at the mercy of whoever you give the check to.
If the account does not have sufficient funds, the check might bounce, and you might have to pay insufficient funds or overdraft fees to your bank.
You can try to get those fees reimbursed by the check writer, but collecting from somebody who’s already low on funds can be time-consuming and expensive (possibly requiring you to take legal action). at least) typically pay on postdated checks unless the checking account owner specifically instructed them not to beforehand.
So the safest practice is not to write post-dated cheques at all and set up a series of standing order payments, provided the recipient is set up to accept automated payments to their account.
What is the journal entry for postdated cheques paid as rent in advance?
If you need a few extra days for funds to clear in your account, ask your payee for an alternate payment date.