How to pay your corporation tax?

How to pay corporation tax? Corporation tax is due on the profit you make in your limited company. It is payable 9 months after the corporation tax period which is generally the same as the accounts period.

What is my company payment reference

Your payment reference is your company UTR (usually 10 digits) with some period-specific characters at the end. For example xxxxxxxxxx001. If it is the first time you have paid corporation tax or the period is more than 12 months then you may have two payment references.

How to find your corporation tax payment reference?

This will be on any payment reminders sent from HMRC. Alternatively you can access the reference by logging in to your online HMRC account and accessing the corporation tax service. If you haven’t already you will need to enroll for this with HMRC.

Tax reference / company UTR number

Your company UTR number is an essential part of your company information and is sent to you after setting up the company for the first time. It is required to submit your corporation tax return.

Ways to pay your corporation tax liability

• Online banking – You can find HMRC’s bank details HERE.
• Debit card – To pay HMRC by debit card, access HMRC’s payment screen HERE.
• Direct debit – If you would like to pay HMRC by direct debit you can follow the instructions on this page to set it up.

Can I pay corporation tax by cheque?

HMRC requests that tax is not paid y cheque. However, if this is the only way you can pay HMRC then it is likely that they will accept this form of payment.

What if I don’t pay my corporation tax on time?

If you do not pay your corporation tax on time then there will be interest for late payment. There are also fines for late submission of the company’s corporation tax return (CT600).

Can I set up a payment plan for corporation tax?

HMRC may be able to set up a payment plan for late corporation tax. This will depend on a number of factors including your previous history with HMRC. To learn more about setting up a payment plan please visit this HMRC page.

Cheltenham Tax Accountants / Online Tax Accountant

To learn more about Cheltenham Tax Accountants or our Online Tax Accountant services visit our home page.

Alternatively, give us a call on 01242 528412 to arrange a discovery call.

Covid-19 policy / What if I can’t pay my corporation tax?

Under the current circumstances as at March 2020, HMRC have been more flexible with their time to pay scheme for businesses. This is usually an arrangement over 12 months which is formally agreed with HMRC to allow you to spread your tax payments. More details and how to contact HMRC to arrange this can be found on this link.