How Soon after I file my corporation tax return is payment due ?

Discussion in 'Accounts & Finance' started by HAIRD2010, Feb 16, 2021.

  1. HAIRD2010

    HAIRD2010 UKBF Newcomer Free Member

    11 1
    hi, prob a very basic question , but cant get my head round it.

    This is my first year end, and need to file my LTD company return - how soon after I file the return do I have to make payment ? and is payment required in full of 2 separate amounts at different times ? many thanks in advance ,
     
    Posted: Feb 16, 2021 By: HAIRD2010 Member since: Oct 11, 2012
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  2. Matthew J

    Matthew J UKBF Regular Free Member

    106 5
    Exact same question I have, thanks!
     
    Posted: Feb 16, 2021 By: Matthew J Member since: Oct 16, 2019
    #2
  3. Scalloway

    Scalloway UKBF Legend Free Member

    16,868 3,589
    Corporation tax dates depend on the company year end set by Companies House when you register the company. Tax is due 9 months after the end of the company's year end. You have 1 year to file the tax return. You pay the tax due in one lump sum. There is no payment on account for next year.
     
    Posted: Feb 16, 2021 By: Scalloway Member since: Jun 6, 2010
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  4. HAIRD2010

    HAIRD2010 UKBF Newcomer Free Member

    11 1
    Thankyou, the bit that im confused with - or prob over complicating ! is my year end was Nov 31 2020, I have 12 months to file the return ... and is it then 9 months after filing I need to pay ? .. that seems a long time , but useful if so ... genuinely appreciate your time replying thankyou
     
    Posted: Feb 16, 2021 By: HAIRD2010 Member since: Oct 11, 2012
    #4
  5. Scalloway

    Scalloway UKBF Legend Free Member

    16,868 3,589
    No you pay your tax then file the return. It seems illogical but that is how it is. You can of course file the return earlier.
     
    Posted: Feb 16, 2021 By: Scalloway Member since: Jun 6, 2010
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  6. HAIRD2010

    HAIRD2010 UKBF Newcomer Free Member

    11 1

    ha ! makes sense now .. upto 9 months to pay .. and upto 12 to file the return , perfect thankyou
     
    Posted: Feb 16, 2021 By: HAIRD2010 Member since: Oct 11, 2012
    #6
  7. Matthew J

    Matthew J UKBF Regular Free Member

    106 5
    Thanks also

    Are there fines on paying the tax late if you inform them this may be the case.?
     
    Posted: Feb 16, 2021 By: Matthew J Member since: Oct 16, 2019
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  8. intheTRADE

    intheTRADE UKBF Regular Free Member

    374 138
    The only penalties are filing your return late

    For late payment there will be a 3% interest charge on the outstanding balance

    My advice would be to inform them ASAP if you are not going to be paying on time.
     
    Posted: Feb 17, 2021 By: intheTRADE Member since: Apr 14, 2019
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  9. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,388 2,511
    HMRC charge interest (currently 2.6% for Corporation tax) if they dont receive payment on the due date. They dont send routine reminders so its wise to set yourself a reminder.

    They do also pay interest if you pay early, the rate is 0.5%.

    If your company cant pay its tax on time and you agree a payment arrangement interest is still generally due.
     
    Posted: Feb 17, 2021 By: MyAccountantOnline Member since: Sep 24, 2008
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  10. UK Contractor Accountant

    UK Contractor Accountant UKBF Legend Full Member - Verified Business

    5,231 941
    which is more than the High Street Banks are paying on instant access business accounts!
     
    Posted: Feb 17, 2021 By: UK Contractor Accountant Member since: Sep 18, 2013
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  11. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

    13,388 2,511
    Yes indeed it is and why I pay my tax early.
     
    Posted: Feb 17, 2021 By: MyAccountantOnline Member since: Sep 24, 2008
    #11