Paying Corporation tax in advance

[NewWorld123]

How much in advance the Corporation tax can be paid? Can this be paid before the tax return is filed with estimates? My return is not due until another one year. I feel business bank interest is low, if I pay corporation tax in advance, HMRC may pay 5+% interest, which is very good. Any thoughts?

[QwertyBerty]

How much in advance the Corporation tax can be paid? Can this be paid before the tax return is filed with estimates? My return is not due until another one year. I feel business bank interest is low, if I pay corporation tax in advance, HMRC may pay 5+% interest, which is very good. Any thoughts?

You should be able to pay your CT bill any time within 9 months of financial year end. Your CT return is due within 12 months so clearly you can submit either at any time so long as it's before their respective deadlines. Personally I would wait for the correct amount before writing a cheque.

QB.

[PhilAtBFCA]

Paying CT Early

I dont think there is any technical reason why you cannot just pay the CT early, even without filing a CT600 Return. The interst rate is reasonable and giving HMRC money in advance could be seen as a safe place for your money in the current circumstances.

[ASB]

If you do pay it early be absolutely sure you use the right reference to ensure it is actually allocated to the right year. In my experience it doesn't seem to matter what I use in the way of reference, or what I use in words in an accompanying letter they simply decide it is for the most recent closed years, they post it and then send it back as an overpayment.

After ringing up the accounts office they seem to manage to get it right. It seems as though in practice they need to know it's on it's way.

[FarmerPalmer]

My company filed its return and paid up at year end.

My company has just received a bank credit for the interest payment.

[ASB]

My company filed its return and paid up at year end.

My company has just received a bank credit for the interest payment.

So it's improved a lot then

[Alfie]

You can make a payment at any time, it will then just sit on your account until allocated against a liability or be sent back as an overpayment.

The credit interest rate isn't quite as nice as you're hoping though...

http://www.hmrc.gov.uk/rates/interest-repayments.htm

[FarmerPalmer]

http://www.hmrc.gov.uk/rates/interes...yments.htm#ct1

3.5% isn't to be sneezed at though.

[crack_ho]

http://www.hmrc.gov.uk/rates/interes...yments.htm#ct1

3.5% isn't to be sneezed at though.

Is that just not before you file. So from 9 months before it is due you will only receive 0.5%? Which is certainly worth getting sniffy at.

[Lewis]

Think it may be 0% now ... http://www.shout99.com/contractors/s...le.pl?id=58267