Upgrade to ChromeUpgrade to FirefoxUpgrade to Internet ExplorerUpgrade to Safari

27th October 2020

So your accountant has just submitted your company tax return, and now the bank account has a substantial amount sitting in it that’s only due in nine months. You’re worried that you might forget to pay it in time or spend it on a shiny new MacBook (other laptops are available). Only if there was a way to solve this problem and better use the money. Well, good news, there is!

Interest

Did you know that HMRC pays 0.5% on Corporation Tax paid early? That’s better than some of the high street banks nowadays. The earliest date they’ll pay interest from is 6 months and 13 days after the start of your accounting period.

Corporation tax is normally due nine months after the accounting year-end date, so your business can bank three months of interest if the funds are in HMRC’s account early enough.

It is worth remembering that the interest is taxable, so it will appear in the accounts.

Get it out of the way and Avoid penalties.

Why subject yourself to having to worry about remembering to pay this so far down the line? If the business can pay the tax, make the payment and save yourself from stress and a potential penalty.

You can’t spend it if it’s not there

Because it is due so late, it is a common mistake to forget about the liability and spend the amount, only to realise closer to the deadline that a large sum needs to be paid.

Practical tips

Have your accountant confirm that they submitted your return before you make a payment, or otherwise, HMRC might send the money back as they would have no tax bill to allocate it against.

Depending on your circumstances, it might not be possible for your business to pay early, so make sure you talk to your accountant first to see if you can take advantage of the early payment interest.

If you like quick and easy-to-read practical guides, why not check out our other articles here? For future posts, follow us on LinkedIn, Facebook, or Twitter.

If you are in the market for an accountant who prides themselves in providing a personal service, give us a call at 0800 917 9100 or e-mail info@myaccountant.co.uk

Latest Posts

If you run a business, you have expenses, and what comes with them are heaps of receipts you must keep….

Read Full Article

Customer Testimonials

“The best thing about MyAccountant is that I can ask them to do a little or as much of the work as I want. Over time I learned how to do most ...

View full testimonial

Rajesh

“The great thing about myaccountant is there is no “portal”, I can just deal with a human being at the other end of the phone, or I can just e-mail them. They are ...

View full testimonial

Rachel

“I have been with MyAccountant for many years and they have supported me through a range of different business needs. From my being a marketing consultant to my running a small publishing company, ...

View full testimonial

Tina

I love having a nominated accountant as my one point of contact, so I do not have to explain everything to a new person every time. My accountant being ACCA-qualified gives me confidence ...

View full testimonial

Olivia

Speak to our team on
0800 917 9100

Or click here to contact us

Join My Accountant Today

Fill out our registration form