Late payment of corporation tax

[xoggoth]

They want the CT600, copy of accounts and short calculation to show how CT is calculated. No need to send bank statements etc unless asked which will only happen in an enquiry.

As for date, I have always tended to ensure divi voucher coincided with main payment but actually I don't think this is necessary. The tax voucher I get from a bank I have shares in (sob!) shows a payment date a few months after the declared divi date.

[DonaldG]

If you can't pay phone the Business Support Line

http://www.hmrc.gov.uk/pbr2008/business-payment.htm

I hear they are giving interest free credit...........

[Dandyman]

So how does it work when preparing the accounts and declaring dividends, and do you have to actually provide copies of bank statements to the revenue, or just keep it as a back up if required?

For example, do any dividends declared have to correspond with any bank statement withdrawals you have made? Or can you declare the surplus after tax/expenses (the profit) as one dividend per tax year, even if several withdrawals are made from the account?

[Alan @ BroomeAffinity]

Which reminds me. When does it need to be submitted?

A year after your year end or if its your first year, 24 months after your commencement date.

[VectraMan]

As far as I know there is no penalty for late payment of CT, only interest. There is a penalty for late submission of the CT600.

Which reminds me. When does it need to be submitted?

[xoggoth]

As far as I know there is no penalty for late payment of CT, only interest. There is a penalty for late submission of the CT600.

[swamp]

You've got 9 months to make the payment (from company year end), so setting aside the money and moving it into a seperate "high" interest deposit account is an excellent idea. Spending it on sweets is not.

Better still pay it now. HMRC will probably pay better interest rates than your bank.

[VectraMan]

You've got 9 months to make the payment (from company year end), so setting aside the money and moving it into a seperate "high" interest deposit account is an excellent idea. Spending it on sweets is not.

[Gonzo]

This is my first ltd, tax due in a couple of months. I thought you had to keep the funds in the account, declared the dividend(s) then make the tax payment, so in theory there should be surplus funds left over anyway? Rather than just leave the bare minimum tax in the account at due date? Or can you move the funds to other accounts?

In theory, it is possible for a business to be running at a loss in between the company year end and the date the corp tax is due and as a result not have the funds available to pay the corporation tax when it is due.

I expect to be hearing a lot more of this happening in the news over the next year or so......

However, making an enourmous assumption about you, the type of businesses that we tend to run generally don't operate at a loss so you have no excuse Unless you have some invoices that have not yet been paid then it sounds like you have over-declared dividends, and that is not good.

You can move the money to other accounts in yourCo's name, but unless you pay money out as salary or dividend or legitimate business expense then it is still yourCo's money, not yours, and it should still be there to pay the tax bill.

[Dandyman]

This is my first ltd, tax due in a couple of months. I thought you had to keep the funds in the account, declared the dividend(s) then make the tax payment, so in theory there should be surplus funds left over anyway? Rather than just leave the bare minimum tax in the account at due date? Or can you move the funds to other accounts?

[Dandyman]

Has anyone ever missed their deadline date, and/or not paid the full amount, what are the penalties for this? Suppose it would also raise an interest in your company by the revenue to maybe dig a bit further?