5% interest, courtesy of HMRC

[crack_ho]

If you pay the CT early (by bank transfer fro example) be sure to use the correct reference number (it changes every year). Otherwise they will credit the previous years CT account. then realise you've paid too much and send a refund cheque with no interest!

(don't ask how I know this )

When I did this, they automatically transfered the money into the new CT account and then sent me a transaction statement.

[Archangel]

If you pay the CT early (by bank transfer fro example) be sure to use the correct reference number (it changes every year). Otherwise they will credit the previous years CT account. then realise you've paid too much and send a refund cheque with no interest!

(don't ask how I know this )

[ASB]

I got a small bit of interest credited to my PAYE account after I "overpaid". Actually I didn't overpay at all, it was the first payment of the year and they attributed it to the wrong tax year.

I think I only get 4.something% from Barclays, so the 5% for CT sounds good. Though I do like having the extra bank balance, even though I know I can't touch the money.

In the circumstances you describe the taxman will only give you 4% anyway. The rates are difference depending on why. If it is a repayment (i.e. you have overpaid tax) then the rate is lower.

[VectraMan]

I got a small bit of interest credited to my PAYE account after I "overpaid". Actually I didn't overpay at all, it was the first payment of the year and they attributed it to the wrong tax year.

I think I only get 4.something% from Barclays, so the 5% for CT sounds good. Though I do like having the extra bank balance, even though I know I can't touch the money.

[QwertyBerty]

Do they do a similar thing for VAT?

QB.

[ASB]

These rates appear to follow the BoE base rate.

What happens if I pay now? Is the rate

a) locked in for the nine month period
or
b) calculated at the end of the period based on the rates over time?

Yes, I expect it would be one of those. I am pretty sure it is B. I don't think it "tracks" the base rate though.

[Moscow Mule]

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

These rates appear to follow the BoE base rate.

What happens if I pay now? Is the rate

a) locked in for the nine month period
or
b) calculated at the end of the period based on the rates over time?

[r0bly0ns]

We paiud our CT about 2 weeks early last year as it was due on 31st December and I was going away over Christmas and new year.


A couple of months later HMRC sent us a cheque for 30 quid

[ASB]

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

http://search.hmrc.gov.uk/kbroker/in...on+tax+payment

[Jammy Dodger]

has anyone got an HMRC link for this where it states that they pay interest for coughing-up early ?...

[KevinS]

Oo.. interesting.. I get 0% in my account at the moment...

How do they pay this interest, in a refund? Is that refund then subject to CT? If you pay that early do you get another refund?

They'll send yourco a cheque.. It is subject to CT AFAIK and yes, pay that early and you'll get another interest payment..

[MrRobin]

Oo.. interesting.. I get 0% in my account at the moment...

How do they pay this interest, in a refund? Is that refund then subject to CT? If you pay that early do you get another refund?

[dude69]

Ok so a small number of companies have got better paying company bank accounts.

But for everyone else, if you pay your Corporation Tax bill early, then HMRC give you interest at the base rate. That's 5%. If you're getting say 3% in your normal account, then on a £20k bill, that's £260 for paying 8 months early. Not huge, but free money at no effort, so why not pay early.....

Of course the other alternative is to open a Northern Rock business bank account and get 5.48% AER on amounts over £10k all the time.