I'm a nosy bastard (EricMc will know how to answer this)

[Somewhatfoolish]

Right...

I know that a mate of mine was X days late with his corporation tax this year (and it is days - less than 10), and I know he owes Y pounds interest due to the late payment (and it isn't very much at all - again less than 10).

What's the formula to work out how much corporation tax he owed? I could obviously work this out myself if I knew anything about tax, but I find the subject so revolting I leave it to other people to take care of...

Best regards,

Curtain Twitcher

Edited by Somewhatfoolish on Thursday 12th March 22:56

Edited by Somewhatfoolish on Thursday 12th March 23:08

[groomi]

Formula you could use is: M+Q=A or M+Q=Sx10

Where:

M = mate
Q = question
A = Answer
S = slap

[Somewhatfoolish]

Wouldn't I need to use calculus seeing he's into derivatives?

see what I did there?

[jamesuk28]

groomi said:

Formula you could use is: M+Q=A or M+Q=Sx10

Where:

M = mate
Q = question
A = Answer
S = slap

[jamesuk28]

Somewhatfoolish said:

Wouldn't I need to use calculus seeing he's into derivatives?

see what I did there?

[Eric Mc]

I'll tell you - for my standard extortionate fee.

[Somewhatfoolish]

Will fifty pence do?

[Eric Mc]

Not even close.

[Somewhatfoolish]

£1.20?

(Really all I need to know is what interest rate the revenue charge on corporate tax... and exactly what that interest rate means [continuous compounding etc])

[mwg123]

Cr@p mate here!

[Eric Mc]

Listed below are the various rates of interest charged by HMRC going back to 2000.

Income Tax

27/01/09
3.5%

6/01/09
4.5%

6/12/08
5.5%

6/11/08
6.5%

6/01/08
7.5%

6/08/07
8.5%

6/09/06
7.5%

6/9/05
6.5%

6/9/04
7.5%

6/12/03
6.5%

6/8/03
5.5%

6/11/01
6.5%

6/5/01
7.5%

6/2/00
8.5%


Corporation Tax Pay and File

From


27/01/09
2.75%

6/01/09
3.5%

6/12/08
4.25%

6/11/08
5.0%

6/01/08
6.0%

6/08/07
6.75%

6/09/06
6.0%

6/9/05
5.25%

6/9/04
6.0%

6/12/03
5.25%

6/8/03
4.25%

6/11/01
5.0%

6/5/01
6.0%

6/2/00
6.75%


The rate is charged on a time apportioned basis on the flat amount owed.

So, if you were supposed to have paid a Corporation Tax liability of £1,000 on 31 December 2008 and you waited until 31 March to pay it, then the interest will be charged as follows:

£1,000 x 4.25% x 5/365 = £0.58
£1,000 x 3.5% x 21/365 = £2.01
£1,000 x 2.75% x 64/365 = £4.82

Total = £7.41

[Tyre Smoke]

Do these rates apply to NI and Income tax deductions too?

[Eric Mc]

If you are referring to Tax and NI collected through the PAYE system, the answer is yes they do, but only for late payments after 19 April each year.

Those who pay Class 4 NI through the Self Assessment system will be charged interest if they pay after the normal SA due dates (31 January and 31 July).