Corporation tax Direct Debit payment

[TheCyclingProgrammer]

Quick question: my accountant has just filed my CT600 and my CT is due in October.

IIRC, even though I have a Direct Debit set up with HMRC, CT DD payments are one-offs, i.e. I need to set up a new instruction this year, is that right? I can't remember exactly what happened last year but I seem to remember it wasn't automatic.

If that is the case, I should be able to set it up now for 8 October or is it too early?

Thanks!

[Clare@InTouch]

The CT references change each year, with each one being year specific, so you need to make a separate payment each time.

As fas as I'm aware you're fine to set up the DD early. It's fine to pay early too, and HMRC pay interest if you do.

[TheCyclingProgrammer]

As fas as I'm aware you're fine to set up the DD early. It's fine to pay early too, and HMRC pay interest if you do.

Thanks Clare. Do you know what interest they pay? I bet its better than the 0.05% HSBC offer on my "Business Money Manager" account and I have the cash-flow to pay now, so maybe worthwhile (CT bill is about £20k).

EDIT: found my own answer, it's 0.5%. So worth a whopping £100!

[Clare@InTouch]

Thanks Clare. Do you know what interest they pay? I bet its better than the 0.05% HSBC offer on my "Business Money Manager" account and I have the cash-flow to pay now, so maybe worthwhile (CT bill is about £20k).

EDIT: found my own answer, it's 0.5%. So worth a whopping £100!

It's not great, but better than many banks these days. Plus you then know it's done. Save accidentally leaving it until the last minute and then forgetting to pay entirely.

[northernladuk]

Thanks Clare. Do you know what interest they pay? I bet its better than the 0.05% HSBC offer on my "Business Money Manager" account and I have the cash-flow to pay now, so maybe worthwhile (CT bill is about £20k).

EDIT: found my own answer, it's 0.5%. So worth a whopping £100!

minus tax......

[The Spartan]

So just how early can you pay CT?

[Murder1]

So just how early can you pay CT?

As soon as your accountant has completed your books, no?

[Clare@InTouch]

So just how early can you pay CT?

There's no set date as far as I'm aware, especially if the CT return has been filed.

If you've not filed the return yet and are paying in advance then there's the possibility that HMRC will return the money, as they don't like being a bank!

[TheCyclingProgrammer]

minus tax......

Indeed.

[DirtyDog]

The CT references change each year, with each one being year specific, so you need to make a separate payment each time.

As fas as I'm aware you're fine to set up the DD early. It's fine to pay early too, and HMRC pay interest if you do.

If you get the reference wrong, they tend to spot it and allocate it to the right year - I have a tendency to forget to change my reference each year and it still gets to the right account!