Corporate Tax Payment arrangement

[170872]

I am struggling to pay my CT and planning to call HMRC payment support line.

In the past they asked me if my salary is contracted or not. I am not sure what they ask me such a question and would be grateful if someone can share some light. How that this influence their decision

Thank you

[mullet]

In the past they asked me if my salary is contracted or not.

If you have the right to draw your salary due to a contract, then that affects the amount of cash left in the company and HMRC would take salary into account. But if you simply choose to draw (for instance) whatever you want/need, a non-contractual set amount, as much as you can or up to the higher rate threshold, then HMRC may argue that you could choose for the company to pay the corporation tax instead.

[Lambs]

...at which point I would add that you might need a salary on which to live, even if it's not fixed by contract. And HMRC must realise this, even if that is not appreciated by the officer on the other end of the telephone who takes your call. (It might be, by a more senior officer).

Lambs