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

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 ,

 

Exact same question I have, thanks!

 

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.

 

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

 

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.

 

ha ! makes sense now .. upto 9 months to pay .. and upto 12 to file the return , perfect thankyou

 

Thanks also

Are there fines on paying the tax late if you inform them this may be the case.?

 

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.

 

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.

 

which is more than the High Street Banks are paying on instant access business accounts!

 

Yes indeed it is and why I pay my tax early.