Are you using the right HMRC banking details?

Taxpayers are being urged to check the HMRC account details they use to settle their tax liabilities online, to ensure they avoid potential penalties and surcharges.

HMRC is making the warning after moving its banking services from the Bank of England to Citi and Royal Bank of Scotland during 2009.

The move means that all the account numbers and sort codes used to pay HMRC in the past have changed.

It's likely that many small business owners may have old stored HMRC payment details in their online banking systems which need to be updated. HMRC say that any payments paid into the old accounts from 2010 onwards may be returned. This could, in turn, lead to late payment penalties, interest and surcharges being applied.

Any businesses who pay HMRC via direct debit will be unaffected.

If you need to check the new HMRC account details if using BACS, internet/telephone banking, or CHAPS, try this guide for more information.

This article was first published on small business portal, Bytestart.