When do I have to submit and Pay Corporation Tax?
Shortly after the end of your accounting year HM Revenue and Customs will send you a form called ‘A Notice to Deliver a Tax Return – CT603’ this is to inform you that a tax return is required for your company. This notice will state the dates that the tax return is due for and the date that it was issued.
It is important to keep the notice safe because it contains the tax reference that you will need to use to file the corporation tax return but also because it contains the payment reference that you will need to pay the corporation tax.
The corporation tax is due nine months and 1 day after the end of the accounting period. For example, if your company year runs form the 1st of January to the 31st of December, the corporation tax is due for payment on the 1st of October the following year.
The corporation tax return is due to be filed 12 months after the end of the period that it relates to. For example, if your company year end was as above from the 1st of January to the 31st of December, the corporation tax return will be due by the 31st of December the following year.
In practical terms if the payment of tax is due nine months and one day after the end of the accounting period the corporation tax return will almost certainly need to be prepared and filed at the same time.
If you are late paying your corporation tax bill HM Revenue and Customs will charge you interest on the amount that is outstanding. Currently this is 3.25% of the amount owed and is called ‘late payment interest’ if you pay your corporation tax bill early HM Revenue and Customs will pay you interest on the amount you pay early.