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Watson Buckle prepare clients for the End of Cheques
Back in 2009, it was announced that paying by cheque would soon be a thing of the past, with the date being set for the abolition of the much-relied on payment method.
The board of the UK Payments Council announced that cheques would be entirely phased out by October 2018, in a bid to encourage the advance of other forms of payment. The move was immediately met with tough criticism from groups representing older people who had expressed their concerns as they relied so heavily on the payment method.
However, the council said there should be “no scenario” for using cheques by 2018 and it wanted to find "easy-to-use efficient alternatives" to the cheque which are understood by everybody.
June 30, 2011 was the final operating day of cheque guarantee cards, which ensure some cheques are honoured. Whilst people will still be able to write cheques for at least another seven years, however, the specific guarantee for those who accept cheques will end.
Alarms have been raised among those for whom other existing forms of payment are unsuitable – the elderly and housebound, schools, clubs and charities, small businesses, and others such as those not internet enabled.
Chartered accountants Watson Buckle are warning clients that they will need to ensure that they are prepared for the end of cheques.
John Kinsella, partner at Watson Buckle, said: “The Government is monitoring the progress of the cheque replacement programme but they will need to consider whether they should intervene to protect vulnerable individual and businesses if there is any threat that cheques may be withdrawn without suitable alternatives being put in place.
“Businesses need to ensure that they are prepared and that they have another payment system in place. Even though the Government has cited 2018 as the date when the cheque will be entirely phased out, many businesses have already stopped accepting cheques as a form of payment.”
For more information or advice about the end of cheques, please contact Watson Buckle on 01274 516700.
