Can I pay my limited company's annual tax early?

[jattscorpion]

Hi,

I have been working as a contractor since February 2012 and them moved to permanent position.

I have not received any amount in my business account since February but my accountant is not closing my account and that force me to pay him every month and now my bank has also started me charging. So its costing me quite a lot.

My Accountant is saying that he can't pay my tax before march next year. Can anyone tell if he is misguiding me or not? I have been searching on internet but have't found any related information.

Thanks in advance.

[malvolio]

Hi,

I have been working as a contractor since February 2012 and them moved to permanent position.

I have not received any amount in my business account since February but my accountant is not closing my account and that force me to pay him every month and now my bank has also started me charging. So its costing me quite a lot.

My Accountant is saying that he can't pay my tax before march next year. Can anyone tell if he is misguiding me or not? I have been searching on internet but have't found any related information.

Thanks in advance.

If you know what to pay, you can pay it in early. If your company is no longer going to be collecting income I can see no reason why a decent accountant can't work out the liabilities now.

However (a) why aren't you closing the company if it is no longer required, (b) the accountant fees are for the year so you won't get a reduction and (c) you are paying the accountant to adivse but otherwise do what he's told. So tell him what you want to happen.

[Nathan SJD Accountancy]

Hi,

If you started contracting in February 2012 and have found a permanent position now, why not tell your accountant that you wish to close the company down ASAP and then take it from there?

Or do you need the company for some other reason?

Then they can advise you on the reasons why you should or should not do it now. I doubt unless you were a very high earner through the company and currently a higher rate tax payer personally that there are any advantages to keeping it open.

Let us have some more details and we may be able to assist you further.

I also can't see an issue with you paying your corporation tax early, but it is better if you know what it is for certain beforehand, otherwise you are just letting HMRC hold your money.

[jattscorpion]

Thanks for your reply.

I have finished contracting in Feb 2012 and working as a permanent from Feb to till now.

I don't understand why my accountant is still dragging it, I have asked him few times and according to him I have to wait till year end.

Regards

[NotAllThere]

Probably it's simply that's when he wants to do it.

[Nixon Williams]

My Accountant is saying that he can't pay my tax before march next year. Can anyone tell if he is misguiding me or not? I have been searching on internet but have't found any related information.

Your question seems to imply that your accountant has the tax money in his bank account.

This is not recommended practice and if this is so, I guess he wishes to hold onto the money in order to earn some interest.

Sadly, there was a case on here of an accountant using the client's money for his own purposes, so best advice would be not to allow your accountant access to your money.

Alan

[Jessica@WhiteFieldTax]

As Nathan implies there is no reason why it can't be paid now, so long as the year end accounts have been done and the return submitted - or at least calculated.

Any taxes would need to be paid before a strike off.

What exactly has your accountant said, and why?

[Jeremiah@RHJAccountants]

As the other accountants have said if your year accounts and Corporation tax return have been prepared it is a simple process to pay the tax,file and stike off if this is the route you want to take? Unless you want ot keep the company open.

Just following on from what Alan has said i do hope you have not paid the corporation tax to your accountant for him to pay over to HMRC.

This is not what any contractor should do willingly, the case recently was where the accountant was providing fake HMRC details so make sure you check the details your accountant has provided you with if you pay HMRC.

[Greg@CapitalCity]

I don't understand why my accountant is still dragging it, I have asked him few times and according to him I have to wait till year end.

Wow, it sounds to me like your accountant just wants to keep you going so you keep paying him a monthly fee??! If you finished trading in Feb 2012, advise your account to prepare your closing accounts up to 28 Feb 2012. That should be the end of it unless there is some awful minimum period that you're tied into with the accountant. There is absolutely no reason why you must wait until March next year before your closing accounts can be finalised.