Corp Tax 2 weeks late

by **orbitsemi** on Tue Mar 16, 2010 11:57 am

Hi,

My first CT return is due 31/5/2010 and will be for about 15k.

I won't be able to pay it all until 14th June (although I could pay about 10k of it on time). What is the likely outcome of me paying 5k or all of it, 2 weeks late? I will file the return itself on time.

James

by **Incredulum** on Tue Mar 16, 2010 12:29 pm

Pay what you can, and tell your tax inspector. They may be quite flexible. (it's a cheap way to borrow money...)

http://www.is4profit.com/small-business-news/20081202-hmrc-delay-tax-payments.html

Interest will be due, but otherwise, don't worry. (but make SURE your tax return is sent in on time)

by **robbob** on Tue Mar 16, 2010 12:53 pm

Hello orbit

Note corp tax is payable 9 months and 1 day after end of CT accounting period - this is earlier than due date for corp tax return - which you mention.
As Incredulum says contact them if you are going to pay late.

by **orbitsemi** on Tue Mar 16, 2010 12:58 pm

Oh really? I thought the return and payment were both due 9 months after the accounting period?

If I don't tell them I'm going to pay late, and just pay 2 weeks late, what happens then? I'm worried about talking to them because the reason I can't pay on time is that I needed to take a dividend which has left me short.

by **Incredulum** on Tue Mar 16, 2010 1:10 pm

You will be talking to a clerk in the Collector of Taxes office. The clerk will put a note on your file "balance of cash coming in a fortnight, do not chase".

Alternatively, as I hadn't noticed the dates, just pay what you can afford and pay the rest later - and THEN submit the tax return.

It's perfectly normal for a company to pay tax based on an estimate at the 9 months and 1 day point, and then to pay more tax/reclaim tax when the actual tax return is finalised/submitted.

by **orbitsemi** on Tue Mar 16, 2010 1:14 pm

Excellent. Very helpful and I can stop sweating to the degree that I have been - many thanks.

by **Chartist** on Tue Mar 30, 2010 10:42 pm

No point at all in phoning the tax office. Just pay what you can by the due date and pay the rest afterwards. All that they will do for a few months is send out demands

Provided that you file the return on time - within 12 months - the only charge will be interest. That will be less than the bank charge you, and of course you don't have to ask!