What are BACS and CHAPS payments?

Jordan Macey

April 21, 2021

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Small Business Accounting

CHAPS—an abbreviation for Clearing House Automated Payment System—is a same-day bank-to-bank payment system. It is typically used for large, one-time payments, as the transfers are relatively expensive to process. There are no upper or lower limits to the amount that can be transferred.


BACS, or Bankers’ Automated Clearing Services enables payments to be made electronically from one bank to another. The transfer method handles all debit and credit card transactions, has an upper limit of £250,000 per transfer and is mainly used for low-value transactions. BACS payments take three working days to clear.


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What do I need to do to pay a dividend?

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When do I have to pay National Insurance? Guide

When do I have to pay National Insurance?

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How should I pay overseas supplier? Guide

How should I pay overseas supplier?

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How do I pay myself a salary? Guide

How do I pay myself a salary?

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How do I pay myself dividends? Guide

How do I pay myself dividends?

To pay a dividend, you need to:

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How do I pay national insurance?

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What is the optimal salary for a Company Director?

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When can I pay myself as a Limited Company Director?

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How do I pay myself as a contractor?

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How do I pay an employee?

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How/ when do I pay myself Dividends?

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PAYE, P60's and Paying Yourself Guide Guide

PAYE, P60's and Paying Yourself Guide

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